Bmw and Toyota Expand Partnership

June 29, 2012 3:27 pm

BMW and Toyota expand partnership

By John Reed in London and Chris Bryant in Frankfurt

BMW and Toyota agreed to deepen a partnership agreed last year, co-operating on hydrogen fuel cells, vehicle electrification, lightweight materials and a future sports car.

The German and Japanese carmakers made the announcement on Friday in Munich after signing an agreement on what they described as a “long-term, strategic

The deal is not a close alliance of the type agreed between General Motors and PSA Peugeot Citroën in February, or Renault/ Nissan and Daimler in 2010, but it does mark a significant broadening of a co-operation agreement between the two traditionally independent companies.

In December of last year BMW agreed to supply Toyota with 1.6 litre and 2.0 litre diesel engines to Toyota’s European vehicles beginning in 2014.

In March the two companies signed a binding agreement to work together on developing next-generation lithium-ion cells for the batteries used in hybrid and electric cars.

“BMW and Toyota both want to make ever better cars,” Akio Toyoda, Toyota’s chief executive, said at a media briefing on Friday. “We respect each other; that is why we can already take the next step together.”

Toyota has been an industry leader in hybrids, and is one of the carmakers leading an industry push to develop hydrogen-powered cars.

However, it has been weaker than many of its mass-market competitors in Europe, where it is overhauling its product offering and seeking to raise its game on design.

The Japanese company said that it was looking to tap into BMW’s expertise in making sports cars. “I am sure working with BMW will enhance Toyota’s ability to make ever better cars,” Mr Toyoda said.

Norbert Reithofer, BMW’s chief executive, said the car industry faced “new and different challenges” from changing technology and consumer preferences.

“Together we have a great opportunity to continue leading our industry through this...