It seems like Toyota Motor Corporation (TMC) is set to widen its influence on the automotive industry with another looming partnership with another Japanese automaker.
After announcing an exploratory arrangement with Suzuki Motor Corporation (SMC) in October 2016 to expand their partnership in the ‘environment, safety and information technology fields’, TMC is set to finalize an arrangement with SMC that will see both companies working towards the development of self-driving vehicles, including other IT-based automotive applications, and procurement, which means 'sharing of sources for parts in Japan and abroad based on a Nikkei report.
As the demand continues to rise for ‘greener’ vehicles including those with alternative propulsions, costs to manufacture and the technology it requires also increases.
The entry of IT companies like Google and Intel in partnership with other automotive brands has also changed the landscape and facilitated the development of more advanced vehicles.
This new partnership between TMC and SMC will benefit both companies as it will defray costs in both research & development and manufacturing while also allowing Toyota to maintain or even enhance its impact on the market and the growth of technologies complementary to the industry.