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Joint Venture

The document discusses a joint venture between BMW and Toyota to collaborate on developing electric and hybrid vehicle technologies. It details how the two companies previously competed in these areas but now recognize the benefits of partnership given their respective strengths in diesel and hybrid technologies. The partnership aims to allow both companies to learn from each other and strengthen their positions in developing future electric and battery technologies.

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Judy Ann Gazzingan
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68 views2 pages

Joint Venture

The document discusses a joint venture between BMW and Toyota to collaborate on developing electric and hybrid vehicle technologies. It details how the two companies previously competed in these areas but now recognize the benefits of partnership given their respective strengths in diesel and hybrid technologies. The partnership aims to allow both companies to learn from each other and strengthen their positions in developing future electric and battery technologies.

Uploaded by

Judy Ann Gazzingan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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JUDY ANN F. GAZZINGAN.

JANUARY 16, 2021

Research for the existing joint ventures, and explain on how their accounting works.

BMW and TOYOTA Join Venture

The deal between BMW and Toyota brings together the worlds largest carmaker and the worlds
largest luxury car company. It also brings together two competing technologies, each of which
have long been unique selling points for the two firms.

BMW spent years insisting the petrol-electric hybrid solutions pioneered by Toyota offered the
wrong solution to environmental challenges facing the motor industry, though it has since
developed its own versions and now agrees that there is merit in hybrid cars.

Toyota, meanwhile, has always insists its own diesel engines were as good as any on the market, a
claim this deal clearly discredits as the firm now effectively acknowledges that BMW's clean
diesel technology is better.

"It is clear that BMW has superior strength in clean diesel technology," Toyota Motor
Corporation's development boss, Takeshi Uchiyamada said at the press conference in Tokyo where
the deal was announced.

Learning from each other


During the announcement, the two firms steered clear or any mention of past rivalry, instead
stressing how they now admire each other's leading positions in their respective fields.

They also stressed the need to further develop the batteries that are used in electric cars, as well as
in hybrids. On balance, it is fair to say that thanks to its petrol-electric hybrid work, Toyota has
much more experience with battery technology than BMW does, though the German firm seems
more committed to pure electric motoring.

But as the partnership develops further, and as the two firms learn from each other, they might
well lift each other to enviable positions from which their partnership could be developed further.

"The agreement marks a milestone for ongoing cooperation between two companies that set the
benchmark in complimentary field," BMW's sales and marketing director Ian Robertson said, with
Mr Uchiyamada adding that the firms "would like to discuss other areas of cooperation".

Mutually beneficial
That would obviously be a best-case scenario - but it is one that will depend on the partnership
being successful.

BMW's arch rival Daimler, which owns Mercedes, is involved in a technology partnership with
Toyota's rival Nissan, and this appears to be going well. A partnership between Volkswagen Group
and Suzuki has run into trouble, however, amidst much acrimony on both sides.

BMW has never before dealt with Japanese car firms at his sort of level, and Toyota's previous
deals with rivals have until recently tended to be one-way licensing affairs, giving others access to
its technologies.

The challenge for both firms will be to make this venture work as a partnership, where both parties
bring something to the table.

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