Toyota Wants to Open Up Powertrain Tech to Rivals

Until now, Toyota and its suppliers have kept much of their technology to themselves to gain an edge over competitors. But according to Reuters, the automaker is now considering selling entire powertrain units to its rivals.

“Toyota suppliers produce a lot of technology which can only be used by Toyota,” Toshiyuki Mizushima, head of Toyota’s powertrain company, told Reuters. “We want to change that to a system where we develop technology with our suppliers at an earlier stage … so they can make that technology available to non-Toyota customers.”

Earlier this month, Toyota announced sweeping updates to its powertrain lineup, starting with a new 2.5-liter inline-four cylinder. The unit is said to improve thermal efficiency, reducing energy losses and promoting a high output. Other changes include light, compact eight- and 10-speed transmissions, as well as a new hybrid system for rear-wheel-drive vehicles that should net improved fuel economy at high speeds. The updates coincide with the move to the Toyota New Global Architecture.

One of the main benefits behind selling the powertrain technology is to increase sales, but Toyota isn’t the only one set to benefit here. In an era of electrified vehicles and skyrocketing R&D costs, automakers can save money by working together. The deal also promotes better fuel efficiency throughout the entire auto industry.

Toyota has a unique advantage: Unlike many powertrains that mix parts made by several different makers, Toyota’s parts are all made collaboratively with its group of suppliers.

“Until now, we couldn’t sell the same inverter used in Toyota’s previous hybrid system to other customers because it wouldn’t fit the motor, or the voltage was different,” Yoshifumi Kato, engineering R&D boss at Denso Corp, Toyota’s biggest supplier, told Reuters. “We can avoid this issue if suppliers can sell the entire system.”

Some automakers are linking up in exclusive partnership deals to collaborate on technology, but according to the report, that’s not what Toyota’s powertrain boss wants. Mizushima said he wants to open up Toyota’s powertrain technology to all rivals, not just specific ones.

Source: Reuters

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