TOKYO: Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that could include the development of new technologies and procurement.
Both automakers, which said in October they were exploring a tie-up, said their boards would make a decision on the matter later in the day.
A partnership could offer Suzuki, a maker of affordable minivehicles and compact cars, access to Toyota’s R&D expertise. Japan’s fourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of R&D in the industry.
“If you look at their production line-up, there’s little overlap except for compact cars. And Suzuki is already buying hybrid technology from Toyota,” said Fujio Ando, an adviser at Chibagin Asset Management.
“One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu,” he added, referring to Toyota’s own minivehicle specialist firm.
Toyota, the world’s No. 2 automaker, invests heavily in R&D in areas including automated driving, artificial intelligence and lower-emission cars.
Toyota and Suzuki are set to announce third-quarter earnings on Monday.
Shares in Toyota and Suzuki were roughly flat, in line with the broader Tokyo market. -- Reuters