Toyoda Gosei and Daicel Corporation (Osaka, Japan) have agreed to cooperate further over future business and enter into a capital tie-up.

"The automobile industry is undergoing significant changes with the emergence of electric vehicles, fuel cell vehicles and self-driving vehicles," the two suppliers said in a statement.

"Automotive parts makers need to look ahead to the many changes and continuing evolution of the industry. To improve their ability to adapt to these circumstances and provide better products to the market, Toyoda Gosei and Daicel will strengthen their cooperative relationship, centred on the fields of safety and new plastics materials, and enter into a capital tie-up."

Target products for cooperation include airbags, fuel caps, fuel tubes, and unspecified "other products".

The pair has agreed to a capital tie-up in the form of cross-holdings of common stock by each company in equal amounts. The acquisition price is expected to be a total of about JPY1bn (US$8.9m) for each company.