Toyota Motor Corp. will raise its stake in Subaru Corp. to 20 percent from around 17 percent, the two Japanese automakers said Friday as they leverage their scale to better compete in developing new technologies.
The investment comes a month after Toyota and another smaller Japanese automaker, Suzuki Motor Corp., said they would take small equity stakes in one another. Such tie-ups highlight how automakers are scrambling to chase scale, manage costs and boost development.
"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 Toyoda said in a statement.