A profitable future for automakers usually relies mostly on yielding the best return from their products and technologies and at times these technologies does not come from the automaker themselves. There have been numerous partnerships between two auto firms and usually it is to exchange technologies with each other. Lately, BMW and Toyota have gone down that route.
Sometime last month, BMW and Toyota held talks regarding the exchange of technologies that they excel in. Reportedly, BMW will supply their diesel engines to Toyota and in exchange, Toyota will share its hybrid technology with BMW. During the 2011 Tokyo Motor Show, both companies signed a memorandum of understanding (MOU) for a mid to long term collaboration on next-generation environment-friendly technologies.
Toyota aims to offer its current line-up with diesel engines especially in Europe where diesel emission tests are very stringent. And also they need to find a source outside of Japan to alleviate the strength of the Yen.
BMW is working hard on their i3 concept hybrid and to fund a hybrid technology development will cost a lot of money compared to buying that technology from another company, for this case, Toyota.
Toyota will receive access to BMW’s 1.6 and 2.0 litre diesel engine which Toyota will use in their Europe market line-up starting from 2014. BMW diesel engines are well known for great economy and low emissions and at the same time powerful and smooth going.
In response, Toyota’s 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.”
As for BMW, they will be working on a next-generation lithium ion battery technology with Toyota and it looks like that there will be more technology collaboration between the two companies.
BMW’s CEO, Norbert Reithofer has this to say about the collaboration, “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 system.”
This appears to be a win-win solution for both companies. BMW diesel engines are good and efficient, but Toyota would be able to purchase the engines in Europe for European production, cutting costs as well as getting a better engine. And as for BMW, they do not have to incur so much cost in developing new technologies.
It’s getting hard to find any car that doesn’t use product from other car makers, and as the cost of R&D continues to rise, sharing technology is practical, cost-effective and will yield better cars at lower costs for customers.
Photo credit: Auto Blog and ridelust.com
