BMW and Toyota combine to develop green tech in the future

By Amir Iliaifar December 1, 2011

BMW-Plug — Image used with permission by copyright holder

German automaker BMW, and Japanese counterparts, Toyota, have agreed to collaborate on future green technologies. Both companies have signed a memorandum of understanding and entered into a mid-to-long-term contract.

Japanese automaker Toyota has met with great success, cornering the ever-competitive hybrid market. However, in Europe, Toyota has not fared as well as it would like – with more European consumers preferring fuel efficient diesel technology over hybrid-electric. In contrast, hybrid-electric autos are doing increasingly well in the American market, a trend BMW is fully aware of and seeks to capitalize on, and what better partner, it would seem, than Toyota to assist them along.

As agreed, both companies will help aid one another in furthering research in the field of next-generation lithium-ion battery technology. In addition, both Toyota and BMW have agreed to identify and discuss other possible fields of collaboration. Furthermore, BMW has also agreed to supply Toyota with 1.6 liter and 2.0 liter diesel engines to Toyota’s European subsidiary by 2014. These engines will be implemented into Toyota-produced vehicles destined solely for the European market.

Marking the announcement, Norbert Reithofer, Chairman of the Board of Management of BMW AG, 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. He added further, ” 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.”

It would appear that both Toyota and BMW seek to gain a great deal for their collaborative efforts, and with all the development and research dollars being saved, consumers can only hope that they will see that savings passed onto them.

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