fbpx
In News

Toyota Suzuki Forms Global Alliance

The two Japanese giants have taken their partnership to new level by formalising a global alliance through each sector. The two companies will buying each other stocks in a bod to care percentage shareholder margins at global scale. Under the terms, Toyota will acquire 2,40,00,000 shares of common stock in Suzuki which rounds upto about 4.94 percent ownership of the total number of shares issued by Suzuki excluding treasury. The total purchased shares stacks upto JPY 96 billion (Rs. 6,432 crore). Likewise, Suzuki will acquire certain shares of Toyota on a global scale which racks upto JPY 48 billion (Rs. 3,216 crore). The shares have been divided according to the two brands global presence. Toyota being the bigger brand of the two, has more ownership of share trade. The two will undertake in the disposition of treasury shares by way of third-party allotment managed by one another. 

Akio Toyoda, President, Toyota Motor Corp. (left) and Osamu Suzuki, Chairman, Suzuki Motor Corp

The brand announced partnership catering to Indian market back in October 2016. According to the agreement, Suzuki will provide Toyota with their Nexa models which includes, Baleno, Brezza and Ciaz. In return Toyota will jointly share and develop the hybrid system and provide R&D to facilitate Suzuki. Additionally, Suzuki will help codevelop Toyota c-segment SUV, which will be shared by two platforms.  

The Toyota and Suzuki partnership has already seen the launch of Toyota Glanza this year.