BMW and Toyota have entered an agreement to develop new age technologies which would power their midsize sports cars of the future. The effort is to work on technologies such as fuel cell systems, lightweight materials and lithium air batteries jointly to reduce development cost.
While BMW is the world’s largest manufacturer of premium cars, Toyota is the global leader in petrol-electric hybrids. The new agreement is an extension of the joint work which began in 2011 where BMW was to supply diesel engines to Toyota and the two companies were to collectively work on lithium-ion batteries and other green technologies.
With the agreement, Toyota would get a chance to expand its footprint in Europe. The company, with diesel powered engines sourced from BMW, can offer new products which would fit the requirements of the highly demanding market.
In return, BMW would get access to modern li-ion battery, fuel cell and hybrid technologies which would make its future cars more efficient. The technological advantage would also help the German carmaker take the fight to Audi more confidently, which of late has been posing a severe threat to BMW is most markets.
“In light of the technological changes ahead, the entire automotive industry faces tremendous challenges, which we also regard as an opportunity. This collaboration is an important building block in keeping both companies on a successful course in the future” BMW CEO Norbert Reithofer said in a statement.