[imkaushik]

Originally Posted by volkman10

After the split from VW completed, Suzuki is news again- this time a possible alliance with Toyota but both companies deny report of partnership talks.

Suzuki, Japan's fourth-largest automaker, and global top-seller Toyota were discussing a possible partnership from a variety of angles including a cross-shareholding deal.






http://uk.reuters.com/article/uk-toy...-idUKKCN0V42J9

Dear All,
I heard this news ( Toyota<-> Suzuki soem tie up) in Japan last week and many of my Japanese friends were asking the condition of business of Suzuki and Toyota in India.
I got the chance to speak about the issue with a very senior director ( retired from Toyota group company TOKAI RIKA).
He threw some interesting insight to the case:
1.Suzuki Japan is looking at 2 new technologies-Internet of Things ( Io T) and Autonomous car.
2.Unfortunately VW had both these tech which is history , due to the diesel scam and the internal struggle of the board members of VW . However TOYOTA had invested huge amount on these 2 technology. Osamu Suzuki san has taken a calculated step to try and join hands with TOYOTA for taking this technology to small cars.
3. Toyota in return is looking at 3 things:
a) A stronger service/ dealer network for its India market through MASS.
b) Look at Africa market for the small cars distribution ( made by Suzuki) as TOYOTA has a very strong network in AFRICA
c) Jointly Fight the silicon valley challenge/threat ( read Apple challenge ) to the conventional car makers.

As we all know by the article - Confession of Capital junkie by FCA's - CEO Marchionne.....the cost of the car can be kept low if the global OEM's share the overlapping technology .... SUZUKI and TOYOTA is doiing exactly the same thing.
If any body is interested to read the presentation( Confession of Capital junkie) you may contact me, I will share the same.

Thanks

[dr. sen]

Dear Kaushik,

Thanx for the interesting and important insight. We fellow Bhp Brethren are proud to have such an important person, right up there. Please do throw some light on both the technologies, which you have mentioned, and how and why they are so important for the car makers and users alike. Please take your time, and post, something, which will be understood by one and all. We would really appreciate, if you do write more often. Thanx in advance.

Regards


dr. sen

[jetti]

And it is now denied:

Suzuki Motor Corp's COO Toshihiro Suzuki denies tie-up talks with Toyota Motor
Suzuki Motor Corp (SMC) Chief Operating Officer Toshihiro Suzuki denied reports of an alliance with Toyota Motor, but conceded that the rival Japanese automaker taking over Daihatsu will toughen competition in India and elsewhere. In an interview, aided by an interpreter, he told Sharmistha Mukherjee, Ketan Thakkar and Satish John that Suzuki and Maruti will have to share development costs, but refused to commit on any possibility of the Indian unit's royalty payments reducing.

Source: http://economictimes.indiatimes.com/...w/50831160.cms

[volkman10]

Will Japan's auto industry consolidate ?

-Japan’s crowded auto industry is poised to look more like other major markets, with three or fewer carmakers left by the end of the decade.

-The 500 trillion yen ($4.4 trillion) economy is home to eight automakers, including the world’s sales leader Toyota Motor Corp., and other global players such as Honda Motor Co. and Nissan Motor Co

Toyota’s deal in January to acquire the remainder of Daihatsu Motor Co. for about $3.2 billion in stock may represent the dawn of a leaner Japanese auto industry

Suzuki next?

Both Suzuki and Toyota have rejected reports by the Nikkei newspaper and other Japanese media suggesting the two also are in talks over an alliance. Regardless of the denials, Jefferies’ analyst Nakanishi expects the two companies may collaborate with one another before the end of the decade.

http://www.autonews.com/article/2016...autonews-daily

[volkman10]

Toyota, Suzuki say exploring possible partnership.

Suzuki’s chairman, Osamu Suzuki, praised Toyota in a prepared statement as the industry-leading car maker and “the most reliable company.” He added, “We will proceed with discussions for the future of Suzuki.”

Japan’s top auto maker and Suzuki say they would explore cooperation in areas including safety and information technology.

Toyota Motor Corp. said Wednesday it was holding talks with Suzuki Motor Corp. on a business partnership, a sign that Suzuki could be heading into the orbit of Japan’s top auto maker after breaking up with Volkswagen AG.

The two companies said in a statement that they would explore cooperation in areas including safety and information technology. They said conditions in the auto industry were changing “drastically and rapidly in an unprecedented fashion.”

Source+Full article

[volkman10]

Originally Posted by GTO

---
However this works out, it has the potential to become the biggest news of 2016.

Here is the joint statement and press release. Potential more surprises to come!




http://www.globalsuzuki.com/globalnews/2016/1012.html

[desdemona]

I imagine the famous Japanese planning ministry (MITI ?)bureaucrats are egging and 'brokering' this AND other 'joint' co-ordination efforts in this and other industries, given that Japanese industry had been displaced by the Koreans in consumer electronics, bypassed by the Americans in IT/software including services, and by the Germans/Europeans in a lot of industrial high-technology industries.

In the light of the longterm funk of Japanese demgraphy and deflationary economy+yen-value-gyrations, etc. They clearly do not want to see any such repeat in the global auto industry, especially since some of their storied firms (Honda, Mazda, Suzuki) are too-small and probably too-geographically-limited-in-sales to easily cope with the next downturn/recession (global like in 2008/9 and esp in the USA where the Japanese firms and brands have an enviably strong and rather profitable presence.) In the light of the gargantuan over-capacity and over-competition that prevails in the global auto industry as well as the epic/risky r&d costs entailed by all the new safety, enviro, automated driving etc technology.

Some firms, such as the Japanese (Toyota working and sharing with Mazda, Daihatsu and now Suzuki, Nissan taking over Mitsubishi...) are clearly preparing for that next, inevitable recession/financial-macroeconomic 'crisis' (esp in the usa economy) by pooling costs and risks. Especially since there is a ceiling and large risks to the position of Japanese car brands and firms in China for geo-politico-nationalist reasons.

Whether non-Japanese firms will manage to achieve similar 'combinations'/'consolidations' in whichever form, and in-time for that next inevitable blood-letting repeat of 2008, even if less severe, remains to be seen.

Sergio Marchionne of FCA is the leading long-term advocate and practitioner of this approach, alongwith say Carlos Ghosn of Renault-Nissan. Clearly more such combinations will happen (quickly enough?) once the next global auto-industry/growth/financial-crisis hits, which could be pretty soon? Ford-Fca? GM-fca? fca-peugeot-citroen? gm-peugeot-citroen? vw group and...?

[GTO]

Originally Posted by volkman10

Here is the joint statement and press release. Potential more surprises to come!

Historically, Toyota has always lent a helping hand to weaker Japanese companies. Am sure it gets a nudge from the Japanese government too.

Toyota doesn't need Suzuki. It's Suzuki that needs Toyota. Suzuki is too small a manufacturer to invest in EVs, hydrogen-fuel cell vehicles, self-driving cars etc. It simply doesn't have the money.

Hats off to Toyota .

[volkman10]

Suzuki to look up to using Toyota's experience in green technology and thus reduce its R&D and thus tend to consolidation within the auto industry.

The collaboration would try to leverage Suzuki’s strengths in low-cost, small cars and Toyota's strengths in advanced r&d and larger vehicles.




Nothing decided on any capital tie-up with as of now.

Smaller and medium sized carmakers are finding it hard to compete in the mid- to long-term not only in powertrain technologies but also in technologies for autonomous driving

A partnership between Toyota and Suzuki would be the latest in a consolidating auto industry. Nissan Motor in May said it was planning to take a controlling stake in embattled Mitsubishi Motors.

Link

Link1

[volkman10]

Toyota Motors and Suzuki Motor corporation - Press conference at the Toyota head Quarters - Japan

Interview has some India specific questions answered and more!

Highlights -
Osamu Suzuki, Chairman of Suzuki Motor Corporation.

As you may know, Suzuki's current business focuses on minivehicles in Japan, and in India, when it comes to operations outside of Japan. Even in such countries, we have understood that there will be uncertainty in the future if we only continue to just refine our traditional automobile technologies which we have been working on thus far.

Toyota's President Akio Toyoda

Suzuki made a frank proposal to us, and in understanding that Toyota is facing the challenges which I had mentioned earlier, we thought that with the relationship between both companies, there is an opportunity for a business partnership to help solve such challenges. As such, we decided to explore such possibilities together.

https://www.youtube.com/watch?v=HxahgDGuLR0

[romeomidhun]

And the sad part:

source: http://indianautosblog.com/2016/10/s...n-india-244706

"...executives from Maruti Suzuki and Toyota Kirloskar have stated that the partnership will not affect their Indian operations, report Economic Times".

IMO, even if they cannot co-operate in production and sales, if they can bring the jointly developed products here, it would be better. Just like how Suzuki and Fiat jointly developed original Suzuki SX4 / Fiat Sedici and produced and marketed them independently would be a good working model.

[aaggoswami]

This month's ACI has an article on Toyota's plan for India, and its mentioned that someone from Toyota appreciated Suzuki for setting up the supply chain. If Toyota is appreciating this, they must be mighty interested. MSIL's established supply chain could be great interest to Toyota and can help Diahatsu. Secondly, Japan's automotive industry is going to have 3-4 major players via consolidation. If Toyota-Suzuki partnership deepens with probability of Toyota having a larger stake, mutual benefits would be huge. Suzuki's expertise in small car is awesome (IMO), Swift, Baleno, the K-series powerplant ( have K12M and K10 at home, done 11.2K and 58K respectively, K12 opened up after 10-11K ) are proof enough about Suzuki's ability to have products for Asian and EU markets. Not that Toyota isn't' faring well in EU, but when it comes to smaller cars, Toyota is not having a larger portfolio.

Suzuki should have access to diesels too, for the US markets, Suzuki did have re-badged Daewoo cars and even the Nissan Frontier re-badged as Suzuki. Toyota can help Suzuki return to US market where Toyota holds a huge presence.

Toyota + Suzuki seems to be a smart combination, if synergies could be worked out between Diahatsu and Suzuki, even better. I even expected Mitsubishi to merge itself with Toyota ( had mentioned a bit about it here ).
Toyota-Suzuki should help Diahatsu step in and could help Maruti counter Hyundai in one way or the other (my thought !).

[deetjohn]

From the press release, it looks like the relation between Osamu Suzuki and Shoichiro Toyoda brokered the deal.

Apparently, Shoichiro is an old industry acquaintance of Mr. Suzuki and the ex-Toyota chairman referred the latter directly to his son Akio.

After Dieselgate, the industry as a whole is moving away from Diesel. So, this partnership is Suzuki placing future bets on hybrids.

Good that Suzuki didn't lose time much time to get this done after VW partnership fell through due to lack of trust on both sides.

[GTO]

Originally Posted by GTO

It's Suzuki that needs Toyota. Suzuki is too small a manufacturer to invest in EVs, hydrogen-fuel cell vehicles, self-driving cars etc. It simply doesn't have the money.

See what I said above? Quotes from a Business-Standard article:

“Hybridisation and electrification is the way forward and if Suzuki does not start work on it now, we will be wiped out. Tomorrow if somebody puts a car in the market which is 30 per cent more fuel-efficient than normal, we will find ourselves in trouble. Suzuki is trying to find how to protect itself against that kind of risk in the future,” added the Maruti Suzuki official.

Hybirds, electric and driverless cars are not Suzuki's strengths; Toyota is famous for these. These are very expensive R&D programmes. “Suzuki has always looked for technology partnerships, which is why they spoke to VW earlier,” said the executive.

[CRtorquefan]

Does this partnership involves sharing of 1.4 D4-D diesel engines for their compact car range for India & other related export markets too.
I guess this engine is more frugal, more drivable & easy on maintenance.