Toyota Adds Suzuki, Daihatsu to Commercial EV, Autonomous Push
The two companies will join Toyota's truck and bus unit to jointly develop commercial vehicles
(Bloomberg) -- Suzuki Motor Corp. and Daihatsu Motor Co. are investing in a Toyota Motor Corp. entity to bring electrification and autonomous driving to commercial vehicles, deepening ties between the automakers.
They will join Isuzu Motors Ltd. and Hino Motors Ltd., Toyota’s truck and bus unit, which formed the venture earlier this year. Suzuki and Daihatsu will acquire a 10% stake in the partnership from Toyota, they said in a statement Wednesday, without disclosing the amount.
The world’s biggest automaker has been stitching together a web of alliances and shareholdings with smaller car-and-truck manufacturers to pool together resources and take part in the shift away from gasoline engines and human drivers. Volkswagen AG and other global automakers have also been forging partnerships as new technologies and business models disrupt the $2.23 trillion global auto industry.
Commercial Japan Partnership Technologies is the name of the commercial-vehicle joint venture, which now includes Suzuki, Daihatsu, Isuzu, Hino and Toyota. Toyota and Suzuki took stakes in each other two years ago and Daihatsu became a subsidiary of Toyota in 2016.
Suzuki and Daihatsu bring to the table deep experience in smaller automobiles used by consumers and businesses, which they said account for about 31 million of the 78 million vehicles owned in Japan and “serve as an essential lifeline in the daily lives of people, especially in rural areas.”
Read more: Toyota, Isuzu, Hino Ally to Develop Battery, Hydrogen Trucks
A key challenge of bringing electrification and autonomous technology to smaller cars is keeping costs under control so they remain affordable. That’s part of the mission of the Toyota-led partnership, which was forged in April.
“There are many issues that mini-vehicle manufacturers are unable to solve on their own,” Suzuki and Daihatsu said in the statement.
©2021 Bloomberg L.P.