Toyota in Talks With Daimler AG to Supply German Automaker With Hybrid Parts
By Scott Doggett September 16, 2010
EDITORS NOTE: Toyota does not supply hybrid parts to Ford.
Collaborations between major automakers to drive down R&D costs in the face of increasingly strict emissions rules that are forcing the companies to produce ever more efficient vehicles have become common.
Today, Japan's Nikkan Jidosha reported that Toyota Motor Corp. is in discussions with Mercedes- and Smart-cars maker Daimler AG to supply the German automaker with parts and technology for hybrid vehicles.
According to the industry newspaper, Daimler approached Toyota and is looking to use the Japanese automaker's hybrid system in its A Class compact model in 2013 or later.
This would be the latest in a string of deals involving hybrid technology between Daimler and other automakers. Most recently, the company teamed with BMW AG on hybrid development and formed a wide-ranging partnership with Renault SA and Nissan Motor Co. involving hybrid vehicles.
For its part, Toyota recently agreed to supply core hybrid parts to Ford Motor Co. and to Mazda Motor Corp. Toyota also supplies Nissan Motors with hybrid technology for the Altima sedan.
For years Toyota hesitated to begin research and development on pure electric vehicles, because it had invested so much in hybrid technology and wanted to get the most out of that investment before moving on to another technology.
But with so many automakers moving into the EV arena, the Japanese automaker has apparently felt compelled to do the same. By providing other automakers with hybrid vehicle technology and core components, Toyota is clearly taking steps to recover its hybrid outlays while at the same time reduce its expenses through economy of scale and shared R&D costs.
Officials at Toyota and Daimler would not comment on the negotiations.
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