In October 2016, Toyota and Suzuki announced that they were planning to do a partnership. Their motivation was to be more effective in surpassing the technological challenges that might occur and to be able to contribute to the consolidation of the automobile industry. Toyota and Suzuki might officially announce the partnership sooner than you would expect.
Actually, the two car manufacturers might be announcing the collaboration today. What is expected out of this partnership is the boost of modern vehicle technology, such as self driving options and the improvement of environmental standards. The rumors also suggest that they would be willing to share sources both in Japan and in other countries that house their factories.
This partnership came as no surprise, since both automakers had been seeking for other companies to work with. Toyota has not met too much popularity in Europe and North America, while Suzuki want to preserve their position in the ever-increasing automobile market. Therefore, the collaboration would benefit both companies.
The advantage that Suzuki brings is the leading position they occupy in India. The unit Maruti Suzuki India LTD is the leader of the market by offering low prices for models such as Alto and Swift. Even after the collaboration, they would continue the selling of cars under the same name so they could escape the antitrust laws.
Also, the two automobile companies together control more than 60 percent of the Japanese market. They are leaders in other countries as well, such as India with 47 percent of the market, Thailand with 37 percent, and Indonesia with 62 percent.
However, it is not the first time when Toyota collaborated with other automobile companies. During the mid-2000s, Toyota had a partnership with Subaru and Isuzu Motors. Then, they have collaborated with Mazda Motors and even BMW. Now, the collaboration with Suzuki is bound to increase the number of cars produced by Toyota to 18 million.
Also, Toyota and Ford Motors launched together a technology that allowed the integration of smartphones to cars. Suzuki ended their partnership with Volkswagen AG because of the high financial demands they required to keep up with the technology.
It is already clear how this partnership would be beneficial for Toyota. As for Suzuki, we cannot say for sure, but Toyota is determined to help Suzuki head in a positive direction.
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