BMW and Toyota join forces

Toyota and BMW are joining forces. Perhaps the Japanese giant had gone as far as it could with its own diesel technology, or perhaps it recognises its hybrid course isn't working in Europe.

Either way, today's signing of a memorandum of understanding between itself and BMW in Daiba, Japan will see BMW 1.6 and 2.0-litre turbodiesel engines fitted to Toyota vehicles sold in Europe from 2014.

"As we strengthen our product plan in Europe… we recognise that there is a lot to learn from the European automotive culture and [it's] tradition of automotive engineering," admitted Toyota Motor Company executive vice president, Takeshi Uchiyamada at the signing press conference.

The other side of the coin is that BMW will gain access to Toyota's lithium-ion battery technology, in addition to that it already receives from its tie-up with PSA/Peugeot-Citroen. The German firm says this decision will allow it to improve battery technology by improving the energy density of existing battery cell technology and discovering new technologies through its cross-collaboration with Toyota for use in future vehicles.

"In future, the BMW Group and Toyota Motor Corporation (TMC) will work together in what is designed to be a long-term technological partnership," explained Dr Ing Klaus Draeger, member of the board of management at BMW AG.

"By carrying out basic research together we want to speed up the development of battery cell technologies, [and in return] the BMW group is going to supply clean diesel engines to Toyota Motor Europe (TME)."

"The two companies also aim to bring together their respective environmental technologies as part of the collaboration. This means that the two companies have agreed to on-going discussions as a way to identify other possible collaborative projects… and by pooling our expertise and power with such future orientated technologies, Toyota and the BMW Group are perfect partners."

Toyota and BMW agreed that battery technology is crucial not only for improving hybrid technology, but also for the future of individual mobility. Both mentioning their desire to move away from the dependance of fossil fuels, the reduction of CO2 (and other noxious gases) and maintaining vehicles that are green, safe and fun to drive.

Toyota said it estimates that since its first hybrid model went on sale in 1997, the subsequent 3.4 million hybrid models sold have reduced consumption of oil by eight billion litres and cut CO2 emissions by 23 million tonnes.

The day after BMW revealed its i-Series battery powered vehicles at Tokyo motorshow, it said it hopes the collaboration will move to reduce battery cost, improve function, and offer its customers the technology they desire. That said, BMW says it recognises that in the interim, battery technology will only be a part of the solution, alongside other technologies such as clean diesel, bio-fuel and hydrogen. The news comes as BMW celebrates its 30th year in Japan with an uptick in sales of more than eight per cent.

"Our diesel engines are a significant part of our BMW EfficientDynamics package, and these engines offer customers… more performance with lower fuel consumption and a lower level of emissions. And these are the clean BMW diesel engines that we are going to supply to the TME in both 1.6 and 2.0-litre units," Ian Robertson, member of the board of management for BMW AG.

Toyota said it hopes the agreement signed today will see battery technologies developed more quickly, and emphasised its willingness to offer turbodiesel-powered models for European consumption.

"The supply and demand agreements we signed today is…one facet of what we expect will be a larger cooperation bringing benefit to both companies, and to our customers," said Didier Leroy, President and CEO of Toyota's European arm.

"Engineering works are already underway, and we will take supply of the first engine in 2014. And while we are not yet prepared to share which models will receive the engines, I can say that we will really be focussing on the locally [European] produced products.

"We believe that tackling the environmental challenges facing our industry will require more than a single approach. Hybrid is clearly at the core of our strategy toward sustainable mobility, and clean diesel will also play a role, particularly in Europe," he commented.

"We feel that by continuing to offer a line-up of clean diesels, we can complement our growing range of hybrid models as the market evolves. Working with… BMW, we think that we can do this more efficiently, reducing development costs, and [bringing new models] quickly to market," Leroy stated.

Toyota has at times been vocal in its criticism of diesel emissions. It will be interesting if this latest collaboration sees a change in the company's views on the future of compression ignition engines.