Toyota, BMW sign Green Giant deal
Under a deal announced in Tokyo today, the two will jointly develop lithium ion batteries for electric vehicles.
BMW will also provide diesel engines to Toyota in Europe, where diesel accounts for about 55 percent of the car market, according to Reuters. Diesel engines are more efficient and emit less CO2 than gasoline models.
Toyota has lost market share in Europe in part because of its dearth of diesel products, Reuters points out. While it does already offer some diesel cars, it has emphasized hybrid vehicles in its green push. It scrapped a plan two years ago go develop diesel in partnership with Japanese truck maker Isuzu Motors.
But it is now revving up its diesel efforts through the BMW accord. The German premium carmaker will deliver 1.6 and 2.0 liter engines to its new Japanese partner starting in 2014.
The agreement gives BMW access to Toyota's experience in lithium ion batteries. Toyota's R&D chief, Takeshi Uchiyamada, said the partnership will speed up research and save costs in next generation battery developments.
The Toyota-BMW accord echoes collaborative pacts between other large automakers, as the industry looks for affordable ways to meet stricter emissions standards around the world. One of Toyota’s main rivals in the general consumer market, Nissan Motor Co., is working together with BMW’s premium market foe Daimler AG, for instance.
Alliances between carmakers have a checkered history. Although Toyota and BMW do not broadly compete, they overlap in the luxury end of the market, and BMW's Mini crosses into Toyota territory.
"Fundamentally we are both engineering companies, so in many aspects we have found we speak the same language," Toyota Motor Europe President and CEO Didier Leroy said at the Tokyo press conference.
Toyota also has partnerships with Ford Motor Co., Aston Martin, Tesla Motors Inc, Microsoft Corp, and even with Salesforce.com, as cars morph into communication devices on wheels.
Let the co-opetition unfold.
Photo: BMW
More co-opetition and transcommunication:
- Qualcomm enters cable-free charging fray
- How your car knows if you'll have a heart attack
- How to get a free car, Chapter 2
- Audi's self-driving A2 lets you catch up on email in traffic
- GM, LG partner on electric vehicle development
- How to get an electric car for free
This post was originally published on Smartplanet.com