Toyota & Suzuki Firms Up Collaboration; MoU Signed

The mooted collaboration between Toyota Motor Corporation and Suzuki Motor Corporation proposed last October takes one step closer to realization with both companies concluding a memorandum to firm up their respective intentions for a concrete business partnership.

In a joint statement issued by both companies, it was revealed that areas of cooperation being explored include environmental technologies, safety, information technology, as well as mutual supply of products and components.

Both companies are also firm in emphasizing their intentions of ensuring free and fair competition with regards to selling their products on the market.

Toyota President Akio Toyoda said of the tie-up, "The words of Chairman Osamu Suzuki at our joint press conference in October last year – ‘If you are running a company, you have to continue to take on challenges. You are running your company for the benefit of society, and this remains unchanged.’ – deeply resonated within me. This, I felt, was indeed the spirit of (the local expression) ‘Let's do it’.”

“Both of our companies, which trace their roots to Enshu (the western part of Shizuoka Prefecture), intend to apply to the fullest the spirit of "Let's do it", and we want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving a society of future mobility full of smiles. I am truly thankful for having been given this opportunity to work together with a company such as Suzuki, which overflows with the spirit of challenge. Toyota looks forward to learning much," Toyoda continued.

Suzuki Chairman Osamu Suzuki said, "Under the leadership of President Akio Toyoda, Toyota was enthusiastic throughout our discussions regarding partnership, even though such was sought by Suzuki, which was concerned about the development of advanced technologies. I want to express my heartfelt appreciation.”

Suzuki-san further affirmed, “In response to Toyota's display of enthusiasm, Suzuki also intensively engaged in the discussions, and we now stand at the starting point for building a concrete cooperative relationship. I want to give this effort our fullest and to aim at producing results that will lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzuki."

There is no mention either way on the possibility of cross share-holding between the two companies, although looking at the failed VW tie-up several years back, that is a path that Suzuki is unlikely to be willing to explore.

It is known, however, that the VW-Suzuki tie-up was motivated from Suzuki’s end by the desire to gain electrified powertrain technology whilst Volkswagen wanted to understand the secrets of Suzuki’s success in India and competency in building compact vehicles at low cost.