Toyota will raise its stake in Subaru to 20 percent from around 17 percent, the two Japanese automakers said on Friday as they leverage their scale to better compete in developing new technologies. The investment comes a month after Toyota and another smaller Japanese automaker, Suzuki, said they would take small equity stakes in each other. Such tie-ups highlight how automakers are scrambling to chase scale, manage costs and boost development. “Our companies … want to pursue the possibilities of making ever-better cars suitable for the CASE (connected, autonomous, shared, and electric) era by bringing together our strengths,” Toyota president Akio Toyoda said in a statement. Traditional car makers, especially smaller ones such Subaru and Suzuki, are struggling to meet the fast pace of change in an industry being transformed by the rise of electric vehicles, ride hailing and autonomous driving. In a statement, Toyota said its investment would amount to up to 80 billion yen ($650 million) based on Subaru stock market value. Subaru will to reciprocate with a stake in Toyota of equal value. “The plan appears to be to ultimately make Subaru a fully owned subsidiary, to help create a ‘mega Toyota’. This is the first step toward that,” said Takes Mikado, managing director of consultancy Panorama. “It’s all about building scale.”