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Suzuki Motor Corp and Toyota Motor Corp have stated that they will commence with formal discussions, aiming to forge a partnership between the two companies for green vehicles, shared procurement, IT and safety technologies.
The deal could mean that Suzuki, the affordable maker of mini and compact cars, will have access to Toyota’s technology. Suzuki is Japan’s 4th largest automaker but the company has been struggling to keep up with the speed of research and development in the industry, which is where Toyota excels. Toyota heavily invests in automated driving, lower emission vehicles and artificial intelligence.
Toyota, as the second biggest car maker, would in turn benefit from Suzuki’s dominant presence in India. Suzuki has cultivated its tightly knit supply chain network in India sine the 1980’s and sells roughly half of all cars bought in the country. This link which will help Toyota to manufacture and sell more mainstream vehicles tailored to the local market.
The companies stated in October 2016 that they were exploring a partnership however they remained tight-lipped until the announcement this morning.
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