Toyota, Suzuki Explore Partnerships

Toyota Motor Corp. and Suzuki Motor Corp. have agreed to study ways to collaborate on new technologies, reduce costs and improve efficiencies.

The companies say they have just begun to explore potential opportunities, including those related to “green” technologies, autonomous and connected vehicles, safety systems, infrastructure development, industrial standards and information technology.

“Everything, including the possibility of a capital tie-up, will be discussed going forward,” Toyota CEO Akio Toyoda told reporters at a joint press conference today in Japan. He says the company is aware that it “may be behind competitors in North America and Europe” in terms of partnerships and establishing standards.

“There will be uncertainty in the future if we continue to just refine our traditional automotive technologies,” adds Suzuki Chairman Osamu Suzuki. But he says any new partnership won’t affect the company’s commitment to maintaining its independence.

Analysts note that Toyota could benefit from Suzuki’s expertise in low-cost compact cars and market-leading presence in India through its Maruti Suzuki affiliate. Suzuki could tap into Toyota’s global resources and product development capabilities.

Suzuki has shunned partnerships since it acrimonious split from Volkswagen, which owned about 20% of the Japanese company until Suzuki bought back the shares last year. General Motors previously owned a partial stake in Suzuki, which it divested amid the global financial crisis in 2009.

Toyota has alliances with Mazda and Subaru maker Fuji Heavy Industries. This summer the company took full control of its longtime minicar subsidiary Daihatsu, which competes in Japan’s minicar segment against Suzuki.