NTT, Toyota Enter Business, Capital Alliance Agreement
Toyota Motor Corporation and NTT Corporation have agreed on business and capital alliance that aims to build a long-term relationship that will enable the commercialization of smart city business. In the agreement, each company will be a core partner to share the same values and promote social development, with the aim of realizing smart cities, which continue to evolve in accordance with the needs of residents.
The companies are seen to spend some ¥200 billion (US$1.8 billion) to bringing their respective technologies in the project, which is seen to start in 2021. Toyota shall hold 80,775,400 shares of NTT's common stock while NTT shall hold 29,730,900 shares of Toyota's common stock.
Smart city platform overview
The two companies have been collaborating in the connected car field since 2017 and have decided to extend such cooperation to smart cities. At CES 2020 in Las Vegas early this year, Toyota, has outlined a project of building a prototype city connecting all kinds of goods and services that support people's lives and will use of its plant in Japan's Susono City in Shizuoka.
Meanwhile, the NTT Group is collaborating with Fukuoka, Sapporo, Yokohama, Chiba and other local governments as well as companies to solve various city and community issues under the ambit of smart city, utilizing the most advanced artificial intelligence (AI), internet of things (IoT), and other information and communications technology resources.
Because of similar endeavors, both Toyota and NTT agreed to engage and work closely in jointly building and operating the Smart City platform as core foundation for realizing smart cities, which was the crux of the business and capital alliance of the two companies.
In the future, Toyota and NTT will aim for further growth through the enhancement of the competitiveness of smart cities and the development of a sustainable society.