Automotive research and development is getting more and more expensive, and automakers everywhere are exploring partnerships that would allow them to split the bill. The latest industry tie-up could include Toyota and Suzuki, who have entered talks on sharing research and development—possibly on autonomous tech, Reuters reports.
Suzuki chairman Osamu Suzuki said the company has been struggling to keep up with the rapid pace of R&D, commenting at a press conference, “R&D in the auto industry is changing rapidly. The future looks perilous.” Toyota CEO Akio Toyoda echoed these sentiments: “The technology race in the auto industry has been escalating at a pace we’ve never seen before. In a situation like this, there are limits to what any one company can do on their own…partnerships are becoming increasingly important.”
Suzuki has yet to announce plans on how it will compete in the areas of self-driving tech and artificial intelligence, so it’s likely the discussions will focus on those upcoming technologies. Toyota has committed significant resources toward automated driving development, and is aiming to bring its self-driving tech to market by 2020. As for what Suzuki might bring to the table, the Japanese automaker specializes in affordable compact cars. However, Toyota just bought Daihatsu for that very purpose. The talks with Suzuki are just beginning, so nothing has been decided yet.
Toyota is no stranger to partnerships with other automakers, of course. A deal with Mazda allows the Mazda2-based Toyota Yaris iA (formerly the Scion iA) to be produced at Mazda’s Salamanca plant in Mexico. Then there’s the Subaru partnership that produced the Subaru BRZ and Toyota 86, and the BMW team-up that’s developing the BMW Z5 and the new Toyota Supra in addition to sharing hydrogen research. Elsewhere in the industry, FCA has been looking for a partner to develop replacements for the Chrysler 200 and Dodge Dart. The company also wanted to merge with GM last year.
Though Suzuki, Japan’s fourth largest automaker, could benefit greatly from a partnership with auto giant Toyota, some have doubts that the two are compatible. Christopher Richter, an analyst for Asia-based brokerage and investment group CLSA, said Suzuki’s 86-year-old CEO has had disagreements with larger automakers in the past. A previous deal with Volkswagen fell through because Suzuki didn’t like surrendering so much control. Toyota is just as big as VW, so it’s unclear if that same issue will pop up if a deal with Suzuki materializes.
“Suzuki is very protective of its independence,” Richter said.
Source: Reuters
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