Friday, July 17, 2009
Toyota to supply hybrid parts to Mazda
Toyota Motor is in talks to supply key components of its petrol-electric hybrid system to Mazda, the smaller Japanese manufacturer and longtime affiliate of Ford, people familiar with the situation said on Thursday.
A supply deal between Toyota and Mazda would amount to an indictment of Ford's ability to compete in hybrid technology, even as the US group seeks to expand production of environmentally friendly vehicles.
Last month, Ford secured $5.9bn in low-interest loans from the US government to develop next-generation low-emission cars.
Ford sold two-thirds of its 33.4 per cent stake in Mazda last November to raise cash but the companies remain partners in product development and production. Mazda uses Ford's hybrid system in its Tribute small sport-utility vehicle, which is based on the Ford Escape.
Buying core hybrid components such as batteries and motors from Toyota could allow Mazda to begin selling a small hybrid passenger car by 2012 or 2013, one of the people involved said. Relying on Ford, as either a supplier or co-developer of a new shared power train, would likely have taken longer.
"When it comes to the capacity to produce [hybrid systems], any choice between Toyota or Ford has to go to Toyota," said Masatoshi Nishimoto, analyst at CSM Worldwide, a research firm.
The Nikkei business daily said Mazda had asked Toyota to supply components for 100,000 vehicles a year, equivalent to 10 per cent of Mazda's sales volume before the recession.
In addition to revenues from the components sales, the added volume would help Toyota reduce production costs and shrink the price gap between its own hybrids and conventional petrol-driven models.
Mazda shares closed up 6.2 per cent at Y240 against a 0.8 per cent rise in the Nikkei 225 average on Thursday.
DATED: 17.07.09
FEED: AW
