Toyota And BMW Join In Creating Greener Automobiles

by Cornelius Nunev

Toyota Motor Corp. and BMW AG, two of our planet's leading automakers, have decided to join hands in creating new greener automotive technology. The announcement was made in a Tokyo press conference on December 1.

Changing emissions

In order to meet higher standards across the world for emissions, the deal was produced. While together, a lot of research will be done with lithium-ion batteries and other things. These batteries are used for most electric vehicles to start up and drive.

Toyota Motor Europe President and CEO Didier Leroy said:

"Fundamentally we are both engineering companies, so in many aspects we have found we speak the same language. It is interesting to see what can be achieved when Japanese engineering meets European engineering and when the cooperation really works."

Talking to individuals

Each business is bringing its own expertise to the collaboration. BMW Chairman of the Board Norbert Reithofer said:

"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."

Toyota comes to the table with a wealth of knowledge concerning hybrid vehicles. The Prius was released 14 years ago starting the technology. BMW, in the meantime, excels in the diesel segment. Toyota's European operations will start getting 1.6 to 2.0 liter diesel engines in 2014 from the business. This was part of the deal.

Europe's diesel

Instead of creating diesel vehicles and getting "lost in the crowd," Toyota made the decision it would work on hybrids for the European market in 2009. Toyota isn't doing as well anymore. It has lost diesel options and is selling fewer cars. Diesel cars make up about 55 percent of sales in Europe.

BMW hybrid

BMW has already made a stab at creating hybrids, and the new collaboration should speed up that effort. The company launched the ActiveHybrid 5 at the 2011 Tokyo Motor Show.

Collaboration should bring a lot to both corporations. They both want to get something out of the deal. BMW will be glad to see how things change with the advancement of greener technologies. It could open them up to a whole brand new market. Toyota CEO Akio Toyoda said he was specifically enthusiastic about the exchange of expertise.

Shares went up

The announcement was great for Toyota's shares on the Nikkei Stock Average. It went up 2.3 percent.

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