Technical Synergies Set Up Between Toyota And Suzuki

An ultra-high-efficiency powertrain for India and other global markets would be developed with technical cooperation between Suzuki Motor Corp., Denso Corp and the world’s largest automaker, Toyota Motor Corp. Suzuki would be transferred technology for the same by the rest two.

However, no details of the proposed powertrain were made available to the media.

“We will receive support for the development of a compact, ultra high-efficiency powertrain that is vital to Suzuki, and we will focus our utmost efforts on its development,” said Osamu Suzuki, chairman, Suzuki Motor Corp.

Talks about a possible partnership for technological development, vehicle production and market development would be initiated between the two Japanese automobile manufacturers that are already in discussions for the development of electric and hybrid vehicles.

In addition to enhancing their combined sales network for the Indian market, the two companies have already decided to join hands to investigate the possibility of the African market.

“As of now, they have only made an announcement on the development of a powertrain by Suzuki, with technology from Toyota and Denso, besides a joint development of the African market. Details are yet to be worked out”, said Maruti Suzuki chairman R.C. Bhargava.

Three major areas would be primarily covered by the increased cooperation, said a press statement by Toyota’s Indian subsidiary.

While Toyota Kirloskar Motor Pvt. Ltd will produce models developed by Suzuki for sale in India, Suzuki would be provided by technological support for compact the powertrain by Denso and Toyota.

Logistics and services is also an area that the two companies are seeking to cooperate. Under this understanding the companies will supply to the African market the vehicle models that are developed by Suzuki in India and those produced by Toyota Kirloskar. The sale networks on both the companies would be used for the purpose.

“Suzuki was the first (among Japanese companies) to enter India and, together with the people of India, has been a presence for pulling forward India’s automotive society. It represents the spirit of ‘let’s do it’…Suzuki is a company that puts into practice being ‘the best in town’,” said Akio Toyoda, president, Toyota.

$15 billion would be invested n R&D by Suzuki for the developi9ng new products.

“It is my hope that the new joint projects will contribute to the future success of both companies, not only in India, but also in the global market,” said Osamu Suzuki.

The ties between Toyota and Suzuki were strengthened when both the companies decided to sell cars from both the companies through the sale channels of both the companies.

Under the agreement, the best-selling models of Suzuki, including the Baleno and small sports utility vehicle Vitara Brezza are supplied to Toyota while Toyota’s popular sedan Corolla would be handed over to Suzuki to be sold through their respective sale channels and networks.

(Adapted from LliveMint.com)

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