Not in the least shy when it comes to forging new partnerships, Toyota announced a long-simmering alliance with Suzuki on Wednesday. Now, before certain internet denizens begin counting down the days until a new Jimny appears in their driveway, this alliance won’t bring much in the way of new product to North America. Europe and other overseas markets, however, can expect a range of new offerings.
Like so many other automaker pair-ups, this yet-to-be-approved deal would see the two automakers focus primarily on technology sharing and autonomous vehicle development. As Toyota loves hybrids, Suzuki stands to benefit in the same way Subaru did.
For its part, Toyota will purchase a 4.94 percent stake in Suzuki for $908 million, with the smaller partner buying up a stake worth half as much. The genesis of this deal goes back to October 2016, when the two companies began talks on a collaborative partnership. A memorandum of understanding was signed the following year.
“On March 20 of this year, the companies announced that they would begin specific considerations in order to engage in joint product development and collaboration in production, in addition to promoting the mutual supply of products, by bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles,” the automakers said in a joint release.
“The two companies intend to achieve sustainable growth, by overcoming new challenges surrounding the automobile sector by building and deepening cooperative relationships in new fields while continuing to be competitors, in addition to strengthening the technologies and products in which each company specializes and their existing business foundations.”
Details of the looming alliance came to light in March, with Toyota agreeing to build badge-engineered versions of its RAV4 hybrid and Corolla wagon for European customers. Production would take place at Toyota’s Derbyshire, UK assembly plant.
You’ll recall that Toyota, which also holds a significant stake in Subaru, made possible the recent Crosstrek Hybrid sold in select U.S. markets. Well, Suzuki will make use of these same hybrid powertrains, using the Toyota-built units in vehicles sold the world over. In exchange, Toyota will field small Suzuki engines in a number of unspecified models.
In the rapidly growing Indian market, it’s Suzuki-born vehicles that will grow a Toyota badge. The two companies also plan to co-develop a compact SUV for those customers.
Sadly, no word yet on a possible Toyota sportbike.
[Image: © 2019 Chris Tonn/TTAC]
Everybody who remembers Suzuki’s last tie up with an automotive giant:
“Suzuki – noooooooooooooooooooooooooooo.”
But this time they’re hooked up with a reputable company.
“by bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles,” the automakers said in a joint release.”
So there was a time when Compact Vehicles were a strength for Toyota organically. Additionally, I am not sure where all of this electrification tech is since they lag pretty much everyone in this department.
This is like their alliance with Daihatsu, for selling cheap cars.
Now Suzuki has a distribution chain to bring the Jimmy to the States!
By the time they made the Jimny street legal in the US, it’d be priced to the point that you don’t want it.
Bring back Scion and have it be rebadged Suzukis and Mazdas!
Yeah, yeah, I know, it’ll never happen. But I personally think a tiny truck-based SUV would sell like mad in the US right now.
The Jimny is TOO small. Women are the main audience and they’d be afraid to drive it on the highway. If there was something Renegade-size that was a proper rugged SUV it would absolutely sell.
Wouldn’t mind a cross branded Suzuki Cappuccino roadster or shared with the Toyota S-FR concept.
So, Toyota now has their tentacles in every smaller Japanese automaker aside from Mitsu.
bd2
Toyota dropped Isuzu like a two dollar whore last year. Saying there is no future for diesels in any Toyota vehicles.
I’ve said it before and I’ll say it again: Eventually Toyota will own all of the Japanese car makers.
Like GM? It has expiration date.
Japan basically is a “big 3” already. Honda will try to remain independent as long as possible but eventually it’ll have to merge with Nissan or Toyota, kind of like FCA.
I am looking forward to Toyota branded pianos and guitars.
Sure you aren’t thinking of Yamaha?
No, Suzuki makes more than cars and bikes.
It would absolutely never sell here but for some reason I find the Suzuki Ignis really cool. Even though it’s basically only a side-opening tailgate away from being the Ecosport