Toyota & Mazda Hybrid Technology Partnership.

Toyota will supply technology seen in its Prius model to Mazda Motor Corp.

Mazda will "develop and produce a hybrid vehicle in Japan and plans to start selling the model by 2013 in its home market, the companies said today in Tokyo." This alliance will allow Mazda to avoid the cost of developing hybrid technology, while simultaneously allowing "Toyota to cut costs of hybrid production by increasing output of hybrid parts. The partnership follows the weakening of Mazda's 40-year-old ties to Ford Motor Co."

Koji Endo, managing director at Advanced Research Japan in Tokyo, said "It's a win-win relationship for both companies," as "The pact will help Toyota lower costs by selling more and saves Mazda having to develop its own hybrid system, which can cost between 50 billion yen to 100 billion yen." Toyota currently provides Nissan with hybrid-related technology, in addition to signing a cross-licensing agreement with Ford in 2004.

Mazda reaffirmed the relationship with Ford "remains solid." Also, the alliance between Mazda and Toyota will aid Toyota's hybrid suppliers, such as Denso Corp and Aisin Seiki, in addition to Panasonic which operates a battery joint venture with Toyota. Toyota's executive VP stated the company will ask its suppliers to sell to Mazda.

Story courtesy of the Society of Manufacturing Engineers. We are proud to be members of this society.

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