Japanese car companies Toyota and Mazda have announced that they are partnering with each other in hopes of bringing innovation to the automotive industry by leveraging each others' strengths.

A recent Toyota press release put Toyota and Mazda's joint goals this way "1) establish a joint venture that produces vehicles in the United States, 2) jointly develop technologies for electric vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced safety technologies and 5) expand complementary products."

Toyota and Mazda's Partnership Not Just About Human Capital

Toyota and Mazda have also agreed to support each other financially through acquiring shares in each competitor through a third-party allotment. While the two companies will be working together, both CEO's stress that this will be good for competition and innovation. This partnership, then, while allowing each company to draw on the strengths of the other, will also motivate each company to leverage its strengths and be that much better at what it does each day: produce great cars. The anticipated date of share acquisition for Toyota is October 2, 2017.