Toyota is currently the leader in hybrid technology and sales globally but lacks the ability to move strongly into the luxury diesel segment. BMW is working fast to get a lead in Europe with its luxury hybrids which it is losing ground to its German competitors. This has ‘pushed’ Toyota Motor Corporation and BMW AG to forge a technical alliance where they have begun joint research into next-generation batteries to power cleaner vehicles. The two automakers will try to increase the performance and capacity of lithium ion batteries with new combinations of materials. In addition to the research cooperation, BMW will supply Toyota’s European unit with diesel engines starting in 2014. The alliance allows Toyota, Asia’s largest carmaker, to expand its European lineup of diesel-powered vehicles.
For BMW, the partnership allows the company to team up with the biggest producer of hybrid vehicles, as it seeks to fend off Audi, which aims to take the luxury-car sales lead. The cooperation plans were originally announced Dec. 1, 2011. The two companies signed an agreement formalizing that memorandum of understanding just last week.
