While there are still details to be worked out, a collaborative agreement between Ford and Toyota to jointly develop light truck and SUV hybrid technologies along with implementing standardized telematics systems is likely to have a significant economic and technological impact on both companies.
The overall international automotive marketplace could experience repercussions from the initiative’s efficiencies as well.
John Hanson, Toyota’s national manager of environmental, safety and quality communications, recently answered a series of questions about the transaction:
Q: Ford and Toyota have long been tough competitors. How did the process get started in which the two companies began negotiations on this project?
A: We will always be tough competitors. Discussions began with a chance meeting in an airport between Alan Mulally and Akio Toyoda. Official negotiations began in April.
Q: How long did the negotiations take to reach an accord?
A: Ford and Toyota have signed a memorandum of agreement on a product development collaboration, with the formal agreement expected by next year.
Q: How much of an impact, if any, did the future mpg standards announced by President Barack Obama have on cementing the transaction?
A: Future CAFE standards are always a key consideration during product planning and development. Toyota has the highest CAFE of any full-line manufacturer, and it will work hard to maintain that position. Toyota has stated for many years that it intended to offer a standard or optional hybrid powertrain across its entire product line, sometime in the 2020s. This collaboration will help it achieve that goal.
Q: When do you expect the resulting vehicles to hit the American marketplace?
A: Later this decade.
Q: How will the sharing of design/production costs be divided?
A: We don’t discuss the financial details.
Q: How widespread will the distribution be of the resulting vehicles? (global, U.S. or other selected nations, etc.)
A: Each company will develop their own vehicles and make that decision on their own.
Q: Are the resulting vehicles to be sold at both Toyota and Ford dealerships?
A: Yes, The agreement is to develop an all-new hybrid architecture to be developed by each company separately.
Q: How will the flow of replacement parts be handled? Will both Ford and Toyota dealerships be provided with repair parts and procedures?
A: That is to be determined.
Q: Will replacement parts and procedures be made available to the aftermarket?
A: That is to be determined.
While there are still details to be worked out, a collaborative agreement between Ford and Toyota to jointly develop light truck and SUV hybrid technologies along with implementing standardized telematics systems is likely to have a significant economic and technological impact on both companies.
The overall international automotive marketplace could experience repercussions from the initiative’s efficiencies as well.
John Hanson, Toyota’s national manager of environmental, safety and quality communications, recently answered a series of questions about the transaction:
Q: Ford and Toyota have long been tough competitors. How did the process get started in which the two companies began negotiations on this project?
A: We will always be tough competitors. Discussions began with a chance meeting in an airport between Alan Mulally and Akio Toyoda. Official negotiations began in April.
Q: How long did the negotiations take to reach an accord?
A: Ford and Toyota have signed a memorandum of agreement on a product development collaboration, with the formal agreement expected by next year.
Q: How much of an impact, if any, did the future mpg standards announced by President Barack Obama have on cementing the transaction?
A: Future CAFE standards are always a key consideration during product planning and development. Toyota has the highest CAFE of any full-line manufacturer, and it will work hard to maintain that position. Toyota has stated for many years that it intended to offer a standard or optional hybrid powertrain across its entire product line, sometime in the 2020s. This collaboration will help it achieve that goal.
Q: When do you expect the resulting vehicles to hit the American marketplace?
A: Later this decade.
Q: How will the sharing of design/production costs be divided?
A: We don’t discuss the financial details.
Q: How widespread will the distribution be of the resulting vehicles? (global, U.S. or other selected nations, etc.)
A: Each company will develop their own vehicles and make that decision on their own.
Q: Are the resulting vehicles to be sold at both Toyota and Ford dealerships?
A: Yes, The agreement is to develop an all-new hybrid architecture to be developed by each company separately.
Q: How will the flow of replacement parts be handled? Will both Ford and Toyota dealerships be provided with repair parts and procedures?
A: That is to be determined.
Q: Will replacement parts and procedures be made available to the aftermarket?
A: That is to be determined.
