According to the release, a "key factor in ensuring optimum development is the focus on a high bandwidth architecture system that can be adapted to the needs of the various vehicle concepts and brands. The extensive sharing of components and production facilities, and the collaborative relationship with suppliers, will enable the alliance partners to achieve significant economies of scale and associated cost advantages, which will also benefit customers, thanks to an outstanding cost-to-performance ratio."
This movie is also interesting from a business perspective because it looks like many of the car companies are starting to take sides against a common enemy -- Toyota.
Most people know that Toyota is openly hoping to surpass GM in terms of overall sales volume in a few years, so it's easy to see why the Detroit firm wants influential allies on its side. Motivation for BMW and DaimlerChrysler may not be so clear in North America, where BMW and Mercedes continue to do well against Toyota's upscale Lexus division by appealing to a slightly different buyer base. But Toyota has recently started selling Lexus in Europe, and that's a direct assault on the German firms' primary profit centers.
This is bad news then for Toyota, which is now looking at three of its biggest competitors building their own type of hybrid propulsion system (which looks like it will be superior to the Toyota system) and inviting others to join them, or at least buy from them.
The Japanese firm had been counting on sales of its own system to help defray the enormous cost of developing and producing its own hybrid system. Given this decision by BMW to go into business with all of the brands that GM and DaimlerChrysler sell, the prospects of Toyota recovering the billions it has spent so far is greatly reduced.
This movie is also interesting from a business perspective because it looks like many of the car companies are starting to take sides against a common enemy -- Toyota.
Most people know that Toyota is openly hoping to surpass GM in terms of overall sales volume in a few years, so it's easy to see why the Detroit firm wants influential allies on its side. Motivation for BMW and DaimlerChrysler may not be so clear in North America, where BMW and Mercedes continue to do well against Toyota's upscale Lexus division by appealing to a slightly different buyer base. But Toyota has recently started selling Lexus in Europe, and that's a direct assault on the German firms' primary profit centers.
This is bad news then for Toyota, which is now looking at three of its biggest competitors building their own type of hybrid propulsion system (which looks like it will be superior to the Toyota system) and inviting others to join them, or at least buy from them.
The Japanese firm had been counting on sales of its own system to help defray the enormous cost of developing and producing its own hybrid system. Given this decision by BMW to go into business with all of the brands that GM and DaimlerChrysler sell, the prospects of Toyota recovering the billions it has spent so far is greatly reduced.