Toyota plans to spend $908 million on shares in Suzuki, adding to Japan’s largest car maker's growing list of partners
By Sean McLain Aug. 28, 2019 6:59 am ET TOKYO— Toyota Motor Corp. TM -0.24% added another Japanese car maker to its growing list of partners, saying Wednesday it would buy a 4.9% stake in Suzuki Motor Corp. 7269 -0.61%
Similar to the deals with Mazda and Subaru, Suzuki will buy a small stake in Toyota worth ¥48 billion, by purchasing shares in the open market. That roughly equates to a 0.2% stake in Toyota, based on Toyota’s share price as of Wednesday.The three-year-old partnership with Suzuki aims to help Toyota build its presence in India and Africa, markets where Toyota has struggled because of the low prices of vehicles there.
The deal also could help Suzuki reduce its reliance on India, where car sales are tanking amid stricter emissions rules, a slowing economy and a tighter lending market. Suzuki is by far the biggest car maker in India, but that has heightened the company’s exposure to the downturn there. The company’s India sales were down 30% in July. Turmoil in India contributed to a 45% decline in Suzuki’s net profit for its first quarter, which ended June 30.
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