Toyota Motor Corp. and Japanese peer Subaru Corp. agreed to acquire shares in each other to expand their 14-year partnership to connected cars and autonomous driving "to survive this once-in-a-century period of profound transformation."
Under the deal, Toyota will acquire 24,289,500 Subaru shares, equal to 3.17% of Subaru voting rights, for about ¥80 billion, while Subaru will acquire a stake in Toyota of the same amount.
Toyota holds a 16.83% stake in Subaru and the deal, which is subject to regulatory approval, would raise its stake in the all-wheel-drive specialist to 20%, worth ¥476 billion as of Sept. 27. The world's largest carmaker expects Subaru to become an affiliated company of Toyota once the deal is completed.
The companies said the new partnership will strengthen their ability to make enjoyable cars suitable for the connected, autonomous, shared and electric, or CASE, era. The deal comes a month after Toyota signed a similar deal with Japanese rival Suzuki Motor Corp.
The newly announced partnership would expand the use of Toyota's hybrid system from Subaru XV to other Subaru models, in addition to cooperation in development of connected and autonomous driving technology.
"Our companies ... want to pursue the possibilities of making ever-better cars suitable for the CASE era by bringing together our strengths and by further deepening our relationship," Toyota President Akio Toyoda said.
The Tokyo-based carmakers have already collaborated on contract production of vehicles, joint development of the rear-wheel-drive Toyota 86 and Subaru BRZ sports car models. In June, the companies announced a new battery-electric platform to codevelop midsize and large passenger electric vehicles and a C-segment-class electric SUV model which will employ Subaru's AWD technologies and Toyota's vehicle electrification technologies.
As of Sept. 26, US$1 was equivalent to ¥107.66.
