BMW officially signs engine deal with Toyota

The rumors and reports are true, the Bavarians at BMW have now made their deal engine deal with the Japanese at Toyota official.

A rather simple breakdown of the BMW-Toyota deal sees the two companies exchange no money, stock or anything easily measurable.

BMW-Toyota signing

BMW-Toyota signing

What is going to happen is actually more valuable than that as the two companies will be scratching each other’s back with fuel saving drivetrain technology.

Fuel economy seems to be the most important concern of the present, near and long term future, so capturing these markets will be key.

BMW already has the European market under dominance in this segment with their brilliant diesel engines and they will be sharing upcoming 1.6 and 2.0 liter powerplants with Toyota.

BMW 2.0 liter diesel

BMW 2.0 liter diesel

The Japanese cars we’ll get quite the boost in sales from an attractive deal but don’t think BMW was tricked into the deal by some accident.

Toyota will supply BMW with hybrid drivetrain technology, similar to the ones offered by the largely successful Prius. With the new drivetrains, BMW is bound to take on yet another chunk of the American car market.

In order to keep the respective markets from being corrupted by this deal, BMW’s new diesels will only be sold by Toyota in Europe.

No idea on what restrictions BMW will have to be subjected to but we do know that the Bavarians will also work together with the Japanese on the new generations of lithium-ion batteries.

Toyota hybrid module

Toyota hybrid module

By some accounts, Toyota may also get an idea about what it takes to introduce carbon fiber into production cars as BMW have managed.

The chit chat is fine but you shouldn’t take it all for granted, nor should you get yourself misty eyed about this collaboration.

BMW and Toyota working together is something that happens for simple business reasons and though the cars that spawn from this deal are likely to be great, they will have a vague feeling of lack of substance.


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