Akio Toyoda, the President of Toyota and Osamu Suzuki, the Chairman of Suzuki Motor Corporation, have declared plans to team up to share their expertise when it comes to research and development. The decision has been made in the wake of the realization Toyota might have fallen behind in this area when it comes its competitors in North and Europe, especially since automotive technologies are developing at a breakneck speed. Companies like Ford and General Motors have recently announced several initiatives and collaborations with regard to safety, connected mobility, self driving cars and electric car technology.
In order for Toyota to remain competitive, it needs to spread out its cost for research while continuing to innovate by collaborating with other manufacturers. Toyota’s collaboration with Daihatsu has been really successful. Suzuki had approached Toyota about collaborating on advanced technologies and the two Japanese manufacturers decided that it made better sense for them to tackle the challenges of developing innovative technologies together.
While Toyota will continue to use its alliance with Daihatsu to cement its position in emerging markets, it will now also have access to Suzuki’s expertise in the small car segment. Suzuki has established as the leading player in the “minivehicle” market in both Japan and India. Nevertheless, the company had withdrawn from the Canadian and US markets in 2013. With help from Toyota, the company might foray into these markets again.
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