“In the future, mobility won’t belong only to carmakers,” Mr. Toyoda said at a news conference announcing the Mazda stake, noting that Silicon Valley is increasingly turning its gaze to the auto industry, looking to disrupt areas including design, manufacturing and retail distribution.
“Totally new players like Google and Amazon are right before our eyes,” Mr. Toyoda said. “We need to cooperate and compete with them.”
Japan’s smaller carmakers have sought partnerships with larger producers before. Mazda was for decades owned by Ford Motor and Suzuki by General Motors, but their American partners withdrew under financial pressure after the 2008 financial crisis.
Mitsubishi last year joined the Renault-Nissan alliance, after the French-Japanese group extended Mitsubishi a $2.2 billion lifeline to help it recover from a scandal over falsified fuel-economy ratings.
Toyota has been extending its reach, as well.
Last year it took over its longtime minicar affiliate, Daihatsu. It has also been strengthening its links with Fuji Heavy Industries, the maker of Subaru cars, in which Toyota owns a 16.5 percent stake. And it has been discussing a potential new partnership with Suzuki.
Toyota and Mazda have been cooperating since 2010, when Toyota agreed to license its gasoline-electric hybrid drive system to Mazda. The companies saidin 2015 that they were exploring ways to expand the scope of their partnership.
With the Prius and other hybrids, Toyota has dominated the market for emission-saving vehicles for years. But as fully battery-powered cars gain favor with regulators and consumers, it faces new challenges — both from traditional competitors and new players like Tesla.
Mazda is known for making powerful and fuel-efficient internal combustion engines, but it lacks its own electric alternatives. Its sporty image and widely praised designs could appeal to Toyota: Mr. Toyoda has repeatedly spoken of his desire to give his company’s products more flair.
Mazda said it planned to issue new shares to Toyota worth 50 billion yen, or about $450 billion, which would give Toyota a 5.05 percent ownership stake in Mazda. In return, Toyota plans to transfer some of its own shares to Mazda. The stock will be worth an equivalent cash amount, but because Toyota is much larger than Mazda, Mazda’s stake in Toyota will work out to 0.25 percent.