Two Japanese automotive companies set up their allianceAugust 29, 2019
Japanese concerns Toyota and Suzuki recently announced an agreement to pool their capital. In a sense, this means creating an alliance with the mutual acquisition of each other’s shares.
Toyota intends to buy back 24 million ordinary shares from Suzuki, which is about 5% of all securities. Reciprocity is also expected from Suzuki, it will also acquire shares from Toyota, although the amount is not reported, but the approximate amount that will be spent on securities is known – 48 billion yen.
Both companies explained that they plan to remain competitors with each other, but to unite all their forces, using strengths. They need this in order to cope with the problems in the automotive industry today. Since the automotive sector is undergoing a real revolution today, closely related to electric vehicles and the latest technology.
The companies also noted that they plan to become partners in the autonomous operation of electric vehicles (transport control with the help of artificial intelligence and without driver action). Combining the strengths of Toyota’s experience with electric cars and the creation of compact cars with Suzuki, the concerns want to achieve great success.
By the way, the possible merger between the two Japanese companies was known back in October 2016.
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