Toyota and BMW possible partnership
On 26th November 2011, press report said that the Japanese Toyota Motor company and Germany’s BMW is planning of partnership with each other for manufacturing eco-friendly vehicles. The press also revealed that under this partnership, BMW will provide diesel engines for Toyota Motor companies whereas the Toyota motor company will provide hybrid vehicles technology to BMW.
This is the Toyota Motor company’s second tie up with automakers as it had a first tie-up with United States’ Ford in August.
The vehicles powered by diesel engine are popular in the Europe. More than 60 percent of the people in Europe are using the cars which are powered by diesel engines. This is due to the reasons that the vehicles powered by diesel decrease carbon dioxide emission and also give good mileage. So the Toyota motor company is thinking of manufacturing cars which are powered by diesel engine to increase its sale in the Europe. Toyota Company lags behind its rivals in terms of market share. The Toyota Company faced a great loss in the European market, so it is planning to manufacture diesel engine powered cars.
BMW is making an agreement with Toyota Company to manufacture more advanced hybrid models and make the environment vehicle’s market more competitive.
Under this deal, BMW is providing diesel engines which can be used for medium sized cars which are around 2000cc to Toyota Company.
Toyota is making partnership with BMW as the BMW cars are more popular and they are much more energy efficient than any other auto maker’s in the Europe. The press said that Toyota Company has already started testing whether the BMW’s diesel engines can be used in Toyota cars.
Toyota with the aim of increasing its market in diesel engine vehicle by getting the diesel engines from BMW and the BMW with the aim of increasing its market in hybrid technology vehicle by getting hybrid technology from Toyota, this deal is been done.