At a press conference on December 1 at the 42nd Tokyo Motor Show 2011, BMW Group and Toyota Motor Corporation appeared to be fully on-board with the “next-generation vehicle” theme of the venue. The German and Japanese automakers announced a mid- to long-term collaboration on green vehicle technologies, starting with diesel and hybrid engines.
Through the agreement, Toyota plans to expand its European lineup and sales of fuel-efficient, low C02-emission, diesel-power vehicles by installing BMW’s 1.6 litter and 2.0 liter diesel engines in certain models—probably midsize cars—sold in that market, starting in 2014.
The two companies also agreed on research in the field of next-generation lithium-ion batteries, as well as other future motor technologies. Toyota is expected to share its technologies for hybrid systems and related areas, if requested, according to reports from the meeting floor.
Marking the announcement, Norbert Reithofer, chairman of the Board of Management of BMW AG, said: “Toyota is the leading provider of environment-friendly series technology in the volume segment and the BMW Group is the most innovative and sustainable manufacturer of premium automobiles. We are now joining forces to further develop environment-friendly technologies and to expand our innovation leadership in each of our segments. Supplying Toyota with our fuel-efficient and dynamic diesel engines represents another important step in the planned expansion of our sales activities for engines and powertrain systems.”
Representing Toyota, President Akio Toyoda said: “It is a great joy and a thrill to enter into this mid- to long-term collaborative relationship with BMW, a company with its own culture and history from its many years of car manufacturing in Europe, and a company that makes cars that are fun to drive. In the spirit of contributing to furthering the development of the auto industry and society, both companies will bring their wide-ranging knowledge – starting with that concerning environmental technologies – to the table and make ever-better cars.”
Paul Tan’s Automotive News noted that Toyota has struggled to improve its market share with its hybrids in Europe, where roughly 60 percent of passenger cars are powered by diesel engines. The company’s European sales fell by 9 percent, to about 810,000 units in 2010; and it holds only a four percent share of the market. With demand for diesel vehicles forecasted to grow, the deal would enable Toyota cut costs by reducing the number of diesel engines made at its domestic and Polish factories.
This is Toyota’s second collaborative deal in six months: In July, Tesla Motors of Palo Alto (News - Alert), California, closed a $100 million supply deal to produce an electric version of Toyota’s RAV-4. In August, Ford and Toyota just announced they're going to collaborate on development of a new hybrid system for pickup trucks and SUVs. Ford and Toyota also are developing next-generation standards for in-car telematics and Internet-based services.
Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Rich Steeves
