Toyota increases stake in Subaru, deepening partnership to develop new technologies

Toyota said it will raise its stake in Japanese rival Subaru to 20%, with the two carmakers deepening their partnership to develop new technologies and reduce costs to remain competitive.

Toyota will raise its stake in Subaru to 20%, up from 17%, with the two Japanese carmakers looking to deepen their partnership to develop new technologies and reduce costs to remain competitive.

The investment is part of a wider trend among Japanese automakers, with Toyota and Suzuki also agreeing to acquire small equity stakes in one another.

Japanese automakers partner up to stay competitive

These tie-up deals are helping Japanese carmakers benefit from economies of scale, reducing overheads and accelerating the development of new technologies to help them compete in evolving automotive market.

“Our companies ...want to pursue the possibilities of making ever-better cars suitable for the CASE (connected, autonomous, shared, and electric) era by bringing together our strengths,” Toyota President Akio Toyota said in a statement.

The pace of change in the auto industry is high, with companies struggling to keep up with transformation driven by electric cars, ride hailing, autonomous vehicles and the rise of the sharing economy.

In time, Subaru plans to become a fully-owned subsidiary of Toyota, with this deal represent the first step towards that goal,’ Takeshi Miyao, Managing Director of consultancy Carnorama, told Reuters.

Looking to invest in Toyota or other automotive stocks? Open an account with IG

Ford and VW to develop electric cars together

Partnerships like these are happening outside of Japan too, with Ford Motor’s and Volkswagen, working together to develop electric and self-driving cars.

‘While Ford and Volkswagen remain independent and fiercely competitive in the marketplace… Unlocking the synergies across a range of areas allows us to showcase the power of our global alliance in this era of smart vehicles for a smart world,’ CEO of Ford Jim Hackett said.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.