Toyota and Ford have entered into a long-term finance partnership that will see the automaker invest up to $3 billion in Ford Motor Company’s financial products.
The deal will see Toyota invest $3.5 billion over five years to help fund Ford’s financial services business.
The investment will help Toyota expand its presence in finance, with Toyota providing finance and technology solutions.
Toyota also will become a financial adviser to Ford, which is headquartered in Mexico.
This will be Toyota’s largest investment in Ford’s business in a decade, and the first time Toyota has invested in a Ford-related company.
Toyota has been heavily invested in its own automotive businesses, particularly with the launch of the Prius plug-in hybrid vehicle in the US.
Ford currently owns a 51.7% stake in Toyota, with a 25.4% stake being held by its parent company, Toyota Motor Corp.
Toyota is one the biggest automakers in the world, with over 4.2 million vehicles sold globally, and a strong presence in the auto industry.
The automaker recently launched a new financial services division called Financial Services.
Toyotas finance business, Toyota Finance, has been growing faster than the company as a whole, with its total revenue increasing by 9.6% year-on-year in 2017.
The company is currently valued at $4.4 trillion, and it has been expanding into financial products in addition to automotive.
The financial products division will be led by Toyota Finance’s senior finance head, Takuya Ohara, who has also been in charge of the finance division at Toyota since 2016.
The financial products business is also working on new technology that will help the automakers financial services customers.
Ford is also a major financial services company in the automotive industry, with financial services companies accounting for roughly 80% of Ford’s total revenue in 2017, according to the company.
Ford Finance has been an investment partner with Toyota for a decade now, with the financial products arm having a total investment of over $1.1 billion over the last five years.
The partnership is one that will provide financial services to Ford customers through Toyota’s Financial Services division.