Suzuki Motor Corp. and Toyota Motor Corp. are two world renowned car makers that have been talking about the possibility of a partnership since October. After months of negotiations, the two auto giants had finally shaken hands. The new improved direction will focus to bring both of them atop of the ultimate trend in their industry, namely green technology. They intend to create from now on products that are eco-friendly while still redefining the sophistication for vehicles.
On Monday, Toyota Motor Corp. and Suzuki Motor Corp. announced the partnership. The new project was inaugurated with the approval of both boards and also with a signed memorandum of agreement. The main goal of the partnership is to facilitate to one another their own bank of expertise. The reinforced project will come up with products specially created for new emerging markets in their industry. The vehicles of today’s world have to be environmentally friendly thanks to green technology and also answer high standards of performance.
Thus, Toyota will have the freedom to access the secret that made Suzuki the dominant brand in the Indian auto market. On the other hand, Suzuki will be repaid with the introduction of Toyota’s latest innovative technology. Some of their recent achievement cover upgrades in the automated driving, low-emission products, as well as artificial intelligence.
While their official statement neglects the possibility of a capital unity, both companies are excited to come up with breakthroughs in domains like the technology of safety or green technology. This is the moment that will allow Toyota to complete its ultimate mission, that of entering the Indian market.
This new project is possible after Suzuki broke up with Volkswagen AG. Back in 2015, these two organizations were under a cooperation of their own. However, they were both discontent with how things evolved since they united their forces together. Suzuki was unwilling to let Volkswagen take so much control as it wanted over part of its operations. On the other hand, the German automaker didn’t agree with its partner’s move to buy diesel engines from Fiat and not from Volkswagen.
The managing director at CLSA, Chris Richter, commented the new partnership as a risky move for Suzuki. The car maker might lose its dominance in the Indian market. On the other hand, the company highly needs access to innovative technology, which Toyota is abundant in.
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