Toyota and Suzuki agree to begin formal talks on partnership
Toyota and Suzuki say they have concluded a memorandum on beginning ‘concrete examinations for business partnership’. The partnership is aimed at saving cost in R&D and sharing ideas on addressing the big challenges facing the auto industry globally.
Both companies plan to trade expertise in parts supplies and R&D, in an agreement that will aid expansion in emerging markets and help them cope with rapid technological sophistication.
The two companies said they were considering collaborating on research and development as the automotive industry ‘environment’ had been ‘changing drastically and rapidly in an unprecedented fashion’ requiring the usual R&D work on conventional vehicles while adding advanced and future technologies encompassing environment, safety, and IT.
Toyota-Suzuki collaboration will impact on Suzuki’s most important other affiliation, the well-established Maruti-Suzuki India Ltd joint venture, which accounts for 47% of the Indian market, is yet to be seen.
The companies agreed to begin concrete examinations toward the realization of business partnerships in areas including environmental technologies, safety technologies, information technologies, and mutual supply of products and components.