In a bid to strengthen their collaboration, Toyota Motor Corporation and Suzuki Motor Corporation have decided to blend into a capital alliance and create a ground-breaking automotive technology. Both the Japanese automotive giants look set to acquire stakes in each other. Toyota will buy Suzuki shares worth 96 billion yen while Suzuki will acquire shares in Toyota worth 48 billion yen.
The automotive sector is going through a never-before turning point with new regulations and new entries into the automobile market. The collaboration promises to bring about a brand-newphase in the automobile industry strengthened by Toyota’s electrification technology and Suzuki’s line of compact vehicles.
Toyota’s hybrid systems are designed to meet emission challenges worldwide while also meeting stringent fuel economy regulations.
It’s a unique collaboration serving the dual purpose of promoting sustainable growth in the automotive sector by creating and developing cooperative relations while at the same time, remaining competitors. They also plan to continue their existing specializations besides executing their collaboration in distinctive fields and autonomous driving technology.
The dynamic collaboration has gone a step ahead empowering both the companies with the right to sell each other’s products in India and abroad. Meanwhile, Toyota and Suzuki are currently involved in manufacturing a new model of SUV for the Indian Subcontinent.
The alliance came into existence following a detailed and comprehensive discussion between the automotive giants to enter new fields to promote their partnership and create revolutionary developments. There are new technological challenges in the automobile industry with the need for a consolidated system to meet these challenges. To serve this requirement and boost technological developments, the alliance came into existence,driven by innovation and continuous research.
The plan to develop autonomous vehicle technology is the driving force behind the alliance that is also a powerful development to face upcoming challenges head-on. Leveraging one another’s manufacturing competence to meet and exceed the demands of the global markets keeps the momentum going.
Sharing each other’s platforms, models and new-age technologies will aid further developments in India and other international markets like Europe. In fact, Toyota has announced that it will start manufacturing Suzuki cars in the Indian Subcontinent by 2022.
What the collaboration means for Maruti?
Considering the past automobile collaborations in India, this alliance doesn’t look as encouraging as it should be. Volkswagen-Skoda, Nissan-Renault and other partnerships have not seen the desired results in India. There are discussions making headlines that this collaboration can witness the loss in sales of Maruti’s premium range models, leading to a substantial dip in growth.
India is still far away from other brand loyalty markets. Fuel efficiency and value for money top consumers’ list and, its precisely why the partnership looks bleak for Maruti at the moment. Of course, Toyota’s technology can be the future-proof to Suzuki’s long-term prospects. However, the alliance should pass the test of time to see if anything is favourable for Suzuki that doesn’t affect its future prospects. In fact, there’s already a 3 per cent dip in Maruti Suzuki’s shares following the partnership limited to plants only in India.
Thomson Reuters fourth-quarter revenue, adjusted earnings rise
NEW YORK (Reuters) – Thomson Reuters Corp reported higher fourth-quarter revenue on Tuesday and said it would start a two-year program that will change it from a holding company to an operating company.
The news and information company, which owns Reuters News, said revenues rose 2% to $1.62 billion, while its operating profit jumped more than 300% to $956 million, reflecting the sale of an investment, a gain from an amendment to pension plan and lower costs.
Its three main divisions, Legal Professionals, Tax & Accounting Professionals and Corporates, all showed higher organic quarterly sales and adjusted profit.
It was not immediately clear if adjusted earnings per share of 54 cents were directly comparable to the 46 cents expected.
Thomson Reuters’ markets are healthy and evolving, making this a good time to transition the company from a content provider to a “content-driven technology company,” Chief Executive Steve Hasker said in a statement.
Workplaces have been transformed by the COVID-19 pandemic and artificial intelligence has a larger role in professional markets, he said.
(Writing by Nick Zieminski in New York, editing by Louise Heavens and Jane Merriman)
Tesla shares set to skid into the red for the year
LONDON (Reuters) – Shares in Tesla were set to plunge into the red for the year on Tuesday, hit by a broad selloff of high-flying technology stocks and the fall of bitcoin, in which the electric carmaker recently invested $1.5 billion.
By 1029 GMT, Tesla was down over 8% in U.S. premarket deals after a similar drop during the previous session. The firm led by Elon Musk has had a stellar ride since 2020, which it began at about $85 per share, before reaching the $900 mark on January 25.
Currently trading at about $657 in pre market transactions, the stock has lost 27% from its peak, which is above the 20% level which technically defines a bear market.
Bitcoin has also swung into a bear market, falling from a peak of $58,354 on February 21 to a low of $45,000 earlier on Tuesday.
A Germany-based trader said he was “taking chips off the table” on Tesla as its 1.5 billion investment in the cryptocurrency could “backfire now”.
Analysts at Barclays noted that there has been a drop of conversations about the electric car makers in the Reddit’s WallStreetBets forum, which could explain some of the loss of appetite for the stock.
“With only 2-3 total submissions on each of the past several days, we remain below the trend in attention that has come along with big returns jumps in the past”, the analysts said in note.
Other analysts have also cautioned against investing in the stock which remains one of the most expensive on the S&P 500 index at 163 times its 12 month forward earnings.
Graphic: Tesla shares selloff after multi-fold gains
(Reporting by Julien Ponthus and Thyagaraju Adinarayan)
H&M, IKEA and Stora Enso backed TreeToTextile builds sustainable fibre demo plant
STOCKHOLM (Reuters) – A venture part-owned by Finnish forestry group Stora Enso, Sweden’s H&M and IKEA said on Tuesday it was set to build a demonstration plant in Sweden for a new, more sustainable wood-based textile fibre after years of research.
To markedly reduce their climate footprint and pollution, large apparel and furniture brands are in dire need of affordable greener alternatives to cotton, traditional viscose and polyester. Several Nordic pulp makers are part of projects developing new clean ways https://www.reuters.com/article/us-nordics-forestry-idCAKCN0WF076 to turn trees into textile fibre.
TreeToTextile said in a statement its plant would have a production capacity of 1,500 tonnes and its owners would fund the bulk of the 35 million euro ($42.6 million) investment.
“The novel process is deliberately designed to have low energy demand and low chemical need. It is engineered to suit large scale production and includes a recovery systemfor reusing chemicals,” it said.
“By investing in a demonstration plant, we are finally on the go. With it we are turning years of R&D into reality to increase the biobased share on the textile market to support climate action.”
TreeToTextile, whose fourth part-owner is innovator Lars Stigsson, said the plant would be located at Stora Enso’s Nymolla mill in Sweden, and its construction would start in the near future.
Viscose is the main existing textile fibre from wood pulp – followed by the newer lyocell which has a cleaner manufacturing method. Production is dominated by Austria’s Lenzing, India’s Aditya Birla and China’s Sateri.
($1 = 0.82 euros)
(Reporting by Anna Ringstrom; Editing by Angus MacSwan)
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