Toyota is the largest automobile manufacturing company in the world. The technology that is used in the Toyota cars was kept as a closely guarded secret. Now the company has decided to open up the technology and sell it to its competitors. This is being done with a vision of boosting up the sales volumes. This will also help in the gradual shift to the vehicles with stricter emissions. As of now, the suppliers who sell the different parts for the Toyota Engine have to produce products that are very unique to Toyota. These products cannot be sold to any other automobile making company.
Shift From Mechanical To Computerized
The company also has a plan of expansion of its hybrid technology. They would focus on selling a single size engine that would be compatible with all types of car models. All the parts would be computerized. There will be parity across the different parts. This will enable them to get fitted with various car models. The mechanical parts will get standardized. This will increase the scope of business also. This will be a shift from the mechanical engineering based activities to more computerized-oriented operations. This trend is likely to increase as the regulators keep on pressurizing for stricter emissions and shift to the electricity based vehicles.
Tie-Ups are the Global Trend
Most of the leading car makers are going for tie-ups for mutual benefits. Sharing of technology has become the trend of the day. It has been seen that Nissan is using engine parts made by Daimler and the related suppliers. Toyota has already started to share a few of its components for Fuji’s sports car model. They have undertaken a joint agreement for this purpose. As the automobile companies are shifting to hybrid cars and those running on electricity, the cost for the Research and Development is spiraling. With the sharing of technology the R&D cost are also being shared.
Dual Benefits For Toyota And Other Companies
In the sharing of the technology, both Toyota and the buying company are to get benefited. With the demand for the latest technology, the prices of the cars are set to rise. But, it needs to be kept under control for selling. With the sale of technology, the business rises. The buying company will also be saving on the technology development costs which are very high. Both the parties are benefiting from this move.
