Japanese car companies Toyota and Suzuki agreed on a partnership

Largest Japanese automaker Toyota Motor Corp. and rival Suzuki Motor Corp. have come to an agreement to strengthen partnerships by acquiring each other’s shares.
Under the agreement, Toyota and Suzuki will receive small shares of each other amid the desire to develop new technologies and adapt to large-scale changes in the industry, Business Censor reports with reference to Reuters.

So, Toyota will pay about 96 billion yen ($ 910 million) for a 4.94% stake in Suzuki, and Suzuki will acquire about 48 billion yen in Toyota's paper market. This is equivalent to a 0.2% stake in Toyota at the price at the close of the session on Wednesday, before the announcement of the transaction.

According to a joint statement by the companies, they intend to cope with the difficulties faced by the industry, "building and deepening relations in new areas, while continuing to remain competitors."

In particular, the companies intend to strengthen the technologies and products in which each of them specializes.

According to the agency, the deal underscores the problems carmakers are facing when trying to keep up with the growth in the industry, which has undergone changes as a result of the rise in the electric car segment, taxi search and car sharing services, as well as autonomous driving technologies.