Joint ventures between automakers is not new, but this partnership has the unique potential to payoff where others have failed.
Both companies share unique expertise in drivetrain technology (Toyota with electric vehicles, BMW with race cars) and are adamant about putting that joint knowledge into new cars.
BMW CEO Norbert Reithofer calls it a “win-win” for both companies. "Toyota and BMW share the same strategic vision of sustainable individual future mobility," said Reithofer.
Just six months ago, BMW and Toyota agreed to work on developing lithium-ion battery cells. That will lead BMW supplying diesel engines to Toyota for models sold in Europe. In March, they started talking about extending their partnership.
"We respect each other,” said Mr. Toyoda adding, “I think this is shown by our taking the next step only six months since the signing of our initial agreement.”
All automakers are feeling greater pressure to cut costs, particularly when it comes to research and development in drivetrains and fuel saving technologies.
Typewriter to iPad?
Could BMW and Toyota create breakthroughs in drivetrain technologies that dramatically change the industry? Reithofer thinks so. After announcing the deal in Germany, Reithofer said the future of auto technology is to the shift from the typewriter to the iPad.
Click on Ticker to Track Corporate News:
- General Motors
- Ford Motor
- Toyota Motor
- Honda Motor
___________________________ Questions? Comments? BehindTheWheel@cnbc.comand Follow me on Twitter