Toyota has agreed to supply Mazda with its hybrid technology under a new license with the Mazda. The deal is just one among many recent partnerships in the auto industry of late.
The two Japanese automakers have been discussing the possibility for almost a year as the fuel-efficient car continues to take hold of the Japanese market. Though speculative, perhaps the agreements finalization was born out of necessity for Toyota who has endured major profit losses as a result of its massive multi-million vehicle recall.
With the heightening of government environmental standards for automobiles providing a hybrid option, or even more than one is becoming increasingly vital to staying afloat.
Gas-electric vehicles have been gaining popularity globally, but as a result of Japanese government subsidies they have been under even higher demand in Japan.
Mazda is aiming to develop a vehicle that fuses Toyota's hybrid technology with Mazda’s own brand of high-tech gasoline engine by 2013. Mazda will borrow such Toyota devices as the company’s control units, inverters and battery packs.
The agreement is representative of small car makers attempting to stay relevant in the changing market despite limited resources for technology and development.
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