Toyota and Mazda enter long-term deal to share technologies

Article by Christian Andrei, on May 14, 2015

Amid rising development costs and more stringent emissions rules, Toyota Motor Corp. and Mazda Motor Corp. have decided to enter into a “long-term partnership” that focuses on projects related to technologies, products, and manufacturing. On May 13, the automakers announced that a joint committee will be formed to assess how the strengths of each company can be best utilized.

There have been reports that Toyota and Mazda have been considering collaborations on many projects. One of these deals is of Toyota supplying Mazda with its hydrogen fuel cell system and plug-in hybrid technology. In return, Mazda will give Toyota access to its fuel-efficient Skyactiv gasoline and diesel engine technology.

At the joint press conference, no mention was given to specific examples of what this cooperation means. While no details were provided by Toyota CEO Akio Toyoda and Mazda CEO Masamichi Kogai, they did cite the possibility of joint manufacturing, hybrid vehicles and fuel cells. The top honchos also didn’t confirm a capital tie-up or provide a timeline on upcoming joint projects.

Toyoda said that no marriage has taken place and that rather, this is “an engagement announcement.” For several years, Toyota and Mazda have had technical exchanges. Toyota has been supplying hybrid drivetrain technology for the Mazda3 sedan. In addition, Mazda is putting together a Skyactiv-equipped subcompact sedan for Scion at its new factory in Mexico.

In particular, Kogai said the new tie-up would “transcend the boundaries” of whatever agreement they already have. Automakers around the world have been pooling resources in the development of green cars. For instance, Nissan Motor Co. has been sharing the costs of advancing hydrogen fuel cell technology with Ford Motor Co. and Daimler AG.

Meanwhile, Honda Motor Co. and General Motors have teamed up for this same purpose. A long-time advocate for industry consolidation is Fiat Chrysler Automobiles CEO Sergio Marchionne who believes that major automakers need to begin working together and stop the wasting of billions to develop the same products and technology.

Last month, Marchionne said that it’s “bizarre” that the consumer doesn’t really get much value from capital consumption. He refers to it as “pure economic waste.” Marchionne had released an analysis titled: “Confessions of a Capital Junkie,” where he said that about 40-50% of vehicle development expenses may be shared by automakers.

In his calculations, doing so will return $2.8 billion to $5.1 billion euros of capital annually. Smaller Japanese automakers like Mazda and Fuji Heavy Industries (the maker of Subaru) consider tie-ups with big companies like Toyota will complement their small r&d budgets.

For example, Fuji Heavy and Toyota had a deal to develop and produce the BRZ sporty coupe, which is offered in the U.S. as the Scion FRS. Daihatsu, a member of the Toyota Group that makes minivehicles, makes Japan-intended minicars for Fuji Heavy.

Toyota has a capital stake in Fuji Heavy. Kurt Sanger, an auto analyst with Deutsche Securities Japan, said that Mazda certainly can’t work on fuel cell technology alone. He cited how Ford, Daimler, and Nissan have come together for this project.

Sanger pointed out that it makes sense for Toyota to recruit Mazda since the incremental volume that Toyota can get from the sales of fuel cell and plug-in hybrid systems to Mazda and others may widen scale and cut production costs. [source: Toyota]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Acura fans and customers rejoice! Sales have begun for the flagship model of Acura’s RLX top-of-the-range sedan – the 2017 Acura RLX Sport Hybrid. Described by Acura as its most...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries