Opening up a completely new segment is very risky, but if you succeed, you have the market for yourself while competitors try to catch-up. Toyota did it in 1997 with the introduction of the hybrid Prius. Now that vehicles with reduced fuel consumption and low carbon emissions are being forced upon carmakers, everyone is following Toyota’s example.
But why spend a fortune to try to develop a new technology when there is already one available? In August, Ford made a deal with Toyota to collaborate on hybrid technology.
Now, according to reports, Toyota is already looking to hook up with another manufacturer. It wants BMW’s diesel engine expertise and in return it is willing to offer its hybrid technology to the Germans.
If the reports are accurate, it makes perfect sense. Toyota wants to expand its diesel-powered models in Europe, where they have a big market share, by borrowing some of the most fuel efficient units available.
BMW, on the other hand, wants to utilize hybrid technology in a larger proportion of its range in a cost-efficient way. On papers, at least, it looks like a win-win situation.
Story References: Japan Times
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