There are talks between Toyota and BMW to share technology in fuel efficient cars. There is a proposed deal where BMW will offer diesel engines, most probably 2-liter versions for midsize cars, for Toyota’s passenger vehicles available in Europe, where sales decreased by 9% last year. However they have yet to decide when the project will start and what its scale would be. This is the second time that Toyota will tie up with a foreign automaker giant. Last August, Toyota and Ford Motor Co. entered a deal to jointly develop hybrid trucks and SUVs. Toyota is seeking to enhance the marketability of its diesel vehicles by obtaining engines from BMW as the strong yen harms the hybrids’ price competitiveness. With this deal, Toyota will be able to decrease its development expenses by having domestic and Polish factories build diesel engines for a smaller number of models.
Toyota is expected to share its technologies for hybrid systems. Meanwhile, BMW could extend its range of green vehicles. The rising demand for green vehicles together with the increasing crude oil prices have compelled major automakers to join forces to reduce costs so that they could slash vehicle prices and offer better vehicles for buyers. It’s all good news for car consumers.
