BMW Group and Toyota Motor Corporation have signed an agreement on a mid-to-long-term collaboration on next-generation environment-friendly technologies. The automakers will research and develop a battery for next-generation green cars and BMW will supply diesel engines to Toyota.
Photo: Takeshi Uchiyamada, Toyota executive vice president, left
and BMW board member Klaus Draeger at a news conference in Tokyo, from WSJ
The next-generation lithium-ion battery is the key point of the agreement, while the other possible collaborative projects will be discussed in the future.
BMW Group will also supply 1.6 liter and 2.0 liter diesel engines to Toyota starting in 2014. The engines will be installed in certain fuel-efficient Toyota-produced vehicles planned for sale in the European market.
“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,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG.
According to The Wall Street Journal, both partners will benefit from the deal. Due to the partnership, BMW lowers its risks in battery development and can also reduce engine-production costs per unit by increasing volume. Toyota will use the BMW engines in Europe, where diesel-powered vehicles make up more than half of the market. The both car makers will share development costs for batteries, though the exact figures are not known yet.
Klaus Draeger, member of the Board of Management of BMW, said at a press conference in Tokyo that the research agreement with Toyota won’t influence BMW’s joint venture in technology for hybrid gasoline-electric vehicles with Peugeot Citroen. Due to that agreement, concluded in March, BMW widened already-existing cooperation on small engines for the Mini brand.
Earlier this year, Toyota teamed up with Ford to develop hybrids.
