Toyota Motor and Suzuki Motor have agreed to collaborate to explore green car, safety and information technology.
In a joint statement released by both the firms stated that the collaboration will try to leverage Suzuki's plus points in low-cost, compact cars and Toyota's strengths in advanced research and development and larger vehicles.
Both the firms have come to this agreement on the understanding both companies will continue to compete as rivals in the market.
But both Suzuki and Toyota are free to join hands with other companies too. This partnership comes a year after Suzuki parted from Volkswagen Group.
On the other hand, Toyota already has alliances with Mazda Motor Corp and Subaru car manufacturer Fuji Heavy Industries.
Suzuki Chairman Osamu Suzuki said, "Toyota is the industry-leading, and the most reliable company which is actively working on various advanced and future technologies."
Suzuki revealed that he first spoke about a partnership with former Toyota Chairman and President Shoichiro Toyoda, father of current CEO Akio Toyoda.
Toyota CEO Akio Toyoda said, "We need to have the ability to respond to changes in order to survive. In addition to the R and D which each company is working on individually, it is very important now to have partners who share the same goal and passion."
Although both the automakers did not reveal any further details about this collaboration. They will be further revealing information in a separate press conference in near future.