Toyota announced a preliminary partnership with Waymo on Wednesday that could result in the Japanese automaker collaborating with the Alphabet unit on autonomous vehicle technology. Why it matters: As the world's second largest automaker by sales and an industry leader in manufacturing efficiency,

Toyota will test Waymo in a city it built near Mount Fuji. The "Woven City" is complete with streets and housing to prove Waymo's artificial intelligence.

Toyota Motor and Alphabet's Waymo said on Wednesday they will explore collaborating on the development of a new autonomous vehicle platform and ways to enhance next-generation personally owned vehicles (POVs).