Toyota Motor Corp.
) and Germany's premium car maker Bayerische Motoren Werke ("BMW")
have signed a new agreement to extend their existing collaboration.
So far, the collaboration has been working on green car technology
(such as electric car batteries) and diesel engines.
In December last year, under the agreement, BMW agreed to supply
diesel engines to Toyota from 2014 in Europe while Toyota decided
to collaborate on lithium-ion battery research for electric cars.
The extended agreement will include four areas including hybrid
power trains and lightweight design.
BMW intends to reduce carbon emissions of new car fleets by
roughly a third to 101 grams per kilometer by 2020. As a result,
the company was seeking new partners to develop hybrid car
BMW has already failed to strike an agreement with
General Motors Company
) to access latter's hydrogen fuel cell technology. Late June, the
company's attempt to manufacture hybrid car components with French
automaker PSA Peugeot Citroen was also aborted as the latter began
to deepen ties with GM's European car division, Opel, to save
Opel formed a strategic alliance with Peugeot in order to
reverse losses in Europe on the back of economic crisis. The pact
will help both the automakers reduce at least $2 billion in
Toyota, a Zacks #1 Rank (Strong Buy) stock, posted a 30.5%
decline in profits to ¥283.56 billion ($3.7 billion) or ¥90.20
($1.17) per share in its fiscal year ended March 31, 2012 compared
with ¥408.18 billion or ¥130.16 in the prior fiscal year. With
this, the company has missed the Zacks Consensus Estimate of $2.52
per share for the year.
Consolidated revenues in the year dipped marginally by 2% to
¥18.58 trillion ($241.59 billion). Total unit sales increased 0.6%
to 7.35 million units during the fiscal year. Higher unit sales in
Japan (8%), Europe (0.3%) and Asia (6%) were significantly offset
by lower sales in North America (8%) and Other reporting regions
The decrease in revenues and profits was attributable to
challenges faced by the company owing to the earthquake in Japan
and severe flooding in Thailand in 2011 as well as unprecedented
strength of the yen.
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