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Toyota, Mazda form partnership to share technologies, confront cost challenges

3K views 19 replies 17 participants last post by  XJCherokee  
#1 ·
Toyota, Mazda form partnership to share technologies, confront cost challenges
Hans Greimel
May 13, 2015

TOKYO -- Toyota Motor Corp. and Mazda Motor Corp. have agreed to form a “long-term partnership” that deepens collaboration on products, manufacturing and technologies as carmakers race to spread spiraling development costs amid ever-stricter emissions standards.

Under the agreement announced May 13, the carmakers will form a joint committee to evaluate “how best to utilize each company’s respective strengths,” the companies said in a statement.

The announcement comes amid media reports that said the two companies are exploring numerous projects. Among them would be an arrangement in which Toyota supplies Mazda with its hydrogen fuel cell system and plug-in hybrid technology, in exchange for receiving Mazda’s fuel-efficient Skyactiv gasoline and diesel engine technology.

Outlining the partnership at a joint press conference, Toyota CEO Akio Toyoda and Mazda CEO Masamichi Kogai declined to offer concrete examples of what the cooperation might deliver. But they identified joint manufacturing, hybrid vehicles and fuel cells as possibilities.

The executives side-stepped questions about the talks evolving into a capital tie-up. They also did not give a timeline for deciding on future joint projects.

“This is an engagement announcement, not a marriage announcement,” Toyoda said.
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#2 · (Edited)
Interesting partnership. It makes a lot of sense strategically, but would have thought that Mitsubishi, Suzuki, and Mazda cooperating would have yielded greater synergies and possibility for savings.

I guess this must mean that FCA's hopes of deepening their cooperation with Mazda is now off the table.

Also makes me wonder if Sumitomo will now take a step back from their involvement in Mazda --- if a capital tie up is eventually achieved.
AutoNews.com said:
For Japan’s smaller carmakers such as Mazda and Subaru-maker Fuji Heavy Industries, circling wagons with a giant like Toyota can complement their own tiny r&d budgets.

Fuji Heavy, for example, cooperated with Toyota in developing and manufacturing the BRZ sporty coupe, which is sold as the Scion FRS in the U.S. Fuji Heavy also gets minicars for the Japan market from Toyota Group minivehicle-manufacturer Daihatsu.

Toyota also owns a capital stake in Fuji Heavy.
AutoNews.com said:
Kogai, keenly aware of his small company’s budget limitations, has made partnering with other carmakers a top priority. Besides producing the upcoming Mazda2-based Scion sedan for Toyota, Mazda will also provide a version of its MX-5 Miata roadster to Fiat. Kogai said the Fiat supply arrangement will continue as planned, as will other partnerships already on the books.

The need for assistance is especially acute at Mazda following it independence from Ford, which had long been Mazda’s sugar daddy, helping defer global r&d costs. While Mazda has said it has no interest in another capital tie-up, such as that with Ford, it still needs plenty of cash.

“The smaller makers in Japan have done extremely well in recent years,” Sanger said. “But looking beyond the next five years, that’s not enough. They have to change what they’re doing.”
All makes a great deal of sense. It almost makes me wonder if Suzuki, Isuzu, and Mitsubishi are also looking at "sugar daddies" (as they all had a corporate "sponsor" of some kind the past).
AutoNews.com said:
For Toyota, the deal also gives it a front-row seat to study Mazda.

Toyota engineers say privately that their company has been quietly benchmarking the comparatively tiny Japanese rival, fascinated by its uncanny ability to churn out high-quality vehicles on a shoestring budget -- and to do so profitably from high-cost Japan.

Toyoda said that despite the difference in size between the two companies, Toyota has much to learn from its pint-sized counterpart.

“In a sense, Mazda is ahead of us in many areas,” he said.

Mazda’s high-compression Skyactiv engines, efficient transmission and lightweight chassis systems, as well as its Kodo design language, are prime examples of areas where Mazda leads Toyota by a “full lap,” Toyoda said.
Wow. That's pretty great insight and some incredible praise from Toyoda himself. Makes you wonder if Mazda has something to not only teach Toyota, but if Ford missed out on an opportunity by cutting their ties to their former Asian partners?
 
#3 ·
Wow. That's pretty great insight and some incredible praise from Toyoda himself. Makes you wonder if Mazda has something to not only teach Toyota, but if Ford missed out on an opportunity by cutting their ties to their former Asian partners?
The Fusion STILL has lots of Mazda's work within it. Between Mazda and Volvo, Ford was coasting for a while here in the States. Almost 20 years ago, when we (Tier 1) had a cost reduction idea for the Escort, it had to go to Mazda for approval, and failed. Lots of time was spent, and Ford's competitors all received the cost reduction that Mazda wouldn't approve. It had to do with the printing on the Power Steering Fluid Cap... I still think Ford is neutered on things like that. My opinion, I know, but that one was plain stupid.
 
#8 ·
Honestly I think this is about Mazda getting much needed money and Toyota getting better engines.... as a result I think it is a perfect partnership as Toyota has monies and needs engines. Mazda has their skyactivG/D engines which is probably a good deal ahead of what Toyota is currently producing in the form of I-4 engines.
 
#10 ·
Toyota is hand picking brands that offer something Toyota does not and look for Toyota to build them into soled revenue stream generators like Subaru has become.

More Brands, not fewer is the future - just need to select the right brands that have something compelling to offer.

GM can expand it's brands (outside of Cadillac/Chevy) if it would only give them some product.
 
#12 ·
So this will end up in a merger and you will see that Sergio Marchionne predicting that more consolidation is needed will come true


John 25:11
Jesus said to her, "I am the resurrection and the life; he who believes in Me will live even if he dies, 26and everyone who lives and believes in Me will never die.
 
#14 ·
Speaking of Marchionne, here PDL's rant from AE "on the Table" http://www.autoextremist.com/on-the-table1/

FCA. Speaking of forming partnerships to reduce costs and share technologies, Toyota Motor Corp. and Mazda Motor Corp. have agreed to form a “long-term partnership” for collaboration on products, manufacturing and technologies as a means to spread development costs while contending with tightening emissions standards, as Automotive News and other sources have reported. The companies will forge a joint committee to figure out “how best to utilize each company’s respective strengths,” according to a statement. Toyota CEO Akio Toyoda and Mazda CEO Masamichi Kogai didn't elaborate on what the cooperation could possibly deliver. “This is an engagement announcement, not a marriage announcement,” Toyoda said. Well, there goes one corporate tie-up that Marchionne won't be a part of. The funny thing is, it remains to be seen whether there will even be a chair for FCA when the music stops. Why? Marchionne hasn't exactly endeared himself to his peers over the last several years.
 
#15 · (Edited)
I certainly see FCA leaving Mazda as an incredibly good thing for Mazda, Was there last month and went for factory tour of both Toyota and Mazda.
Agree Mazda do a lot for the team they have.

One legacy from Fords is that the pace is more frantic at Mazda building cars and produced end of line rework that day vs Toyotas was slower and did not see rework at the end of the line.
However it was hard to judge as I was shown regular consumer models 15 hours build time at Mazda to Prestige hybrids at Toyota requiring 20 hours.

End result is I think Mazda has breathed a sigh of relief with Ford out of the equation and co-operation once agreed between Japanese companies is just phenomenal that in West we could NEVER achieve.
Eg Factory making x-part is destroyed, fellow car maker may assists with their suppliers to help out ASAP.
Here is the west we would just laugh at our good fortune now that our competitor is in trouble... This is the attitude I am talking about.

If Toyota can get more euro design, throw some data out and really improve the drivers experience - ie drivers type of car, put newer efficient drivetrains in,
They will have amazing success.

Bring it on I say as consumers win with better driveable - more enjoyable cars with both better performance and style while getting that Japanese engineered build quality which why many choose to buy from Toyota a car appliance in the first place as locally in Australia most families cannot afford to risk a lemon as we have no decent laws. Toyota Mazda etc are seen as a very safe bet here for reliability.
 
#18 · (Edited)
Sounds like .... Stayin' Alive and also the drum solo intro to ..... Another One bits the Dust


Mazda is a....... gem. Always was although sometimes.......... in the rough.


One could picture a happy FCA / Mazda Co operation.



Anybody but Toyota would have been 'better'.

Same with Subie.

Same with - anyway

It will end up Japan Inc / Toyoski ( all the little kittens ), Nissan- Renault - whatever and then 'Honda'...........


Honda / Mazda might have really been good......same with NR / Mazda.


Somebody somewhere someday .... is going to do something with a Chinese partner . Bigger, better, and different than what we have seen so far.


Maybe and the key concept is " Maybe " the only or best way to prevent / counter / 'survive' Toyoski on a sustained longterm, and profitable full spectrum basis.
 
#19 ·
Toyota takes a small step to incorporating Mazda into its auto empire liked Daihatsu and others before them.

This is exactly what Marchionne suggested and envisioned. I still think that FCA will eventually acquire Suzuki as the VW/Suzuki deal unravels. It would give a much better access to the Indian market where Suzuki excels, and where FCA is a major parts producer,but not a presence unlike Suzuki. FCA absorbing Suzuki, fits together well from technology and market penetration reasons, as does the desire to provide a succession for Mr. Suzuki.