Toyota Motor Corp. and Nippon Telegraph and Telephone Corp., Japan's auto and telecommunications giants, formed a capital tie-up Tuesday to build energy-efficient "smart cities" where autonomous vehicles transport residents. The two firms, which have been developing "connected cars" equipped with advanced telecommunication systems since 2017, deepened their partnership into mutual shareholdings, with each investing around 200 billion yen ($1.8 billion) by purchasing each other's treasury stocks. Toyota said it will start the smart city project at a 175-acre site at the foot of Mt. Toyota has said only fully autonomous, zero-emission vehicles are allowed to travel on main streets in the envisioned smart city where around 2,000 residents have in-home robotics to assist their daily lives. NTT also said it will launch an internet-led smart city project at an NTT-related block in Shinagawa area in Tokyo's Minato Ward.

Toyota Motor Corp. and Nippon Telegraph and Telephone Corp. said Tuesday they will form a capital tie-up to build an energy-efficient "smart city" using advanced information technology. In the tie-up, the auto and telecommunications giants said they will mutually invest around ¥200 billion ($1.8 billion) by purchasing each other's treasury stocks. Development of "smart cities" has been accelerating globally. Autonomous vehicles provide transport for their residents and energy is used efficiently with internet-connected devices tracking real-time consumption of electricity and gas. Toyota said in January it plans to build from early 2021 a fully sustainable prototype city at a 175-acre site at the foot of Mount Fuji where only fully autonomous, zero-emission vehicles will be allowed to travel on main streets.

NAGOYA – Toyota Motor Corp. and Mazda Motor Corp. are set to form a capital alliance to boost joint development of electric vehicles, sources close to the matter said Friday. Japan's largest carmaker is mulling taking a roughly 5 percent stake in Mazda, while Mazda may also invest in Toyota, the sources said. The two automakers are expected to announce the plan later in the day. Toyota is scheduled to release its earnings results for the April-June period on Friday afternoon. Global carmakers are facing growing costs to comply with stricter emission and other environmental regulations.