Toyota begins talks to provide Mazda with hybrid technology+

NAGOYA, July 16 Kyodo -
Toyota Motor Corp. has began talks for a tie-up with Mazda Motor Corp. as it
considers providing the smaller rival with core parts of a gasoline-electric
hybrid car with an eye to making its pioneering green technology a global
standard, sources familiar with the matter said Thursday.
Toyota is expected to supply batteries and motors to be used in a hybrid car
Mazda plans to release sometime between 2010 and 2015, the sources said.
The deal between Toyota and Mazda is likely to open the way for other similar
tie-ups between automakers amid a growing market for energy-saving cars,
particularly in Japan, due partially to recent government tax breaks and
subsidies for hybrids and other eco-friendly vehicles.
''Thanks to tax breaks for eco-friendly cars, the hybrid age has arrived
earlier than expected,'' a senior Toyota official said.
With Toyota and Honda Motor Co. leading the green market with strong sales of
their Prius and Insight hybrids, attention is now shifting on how other
competitors like Nissan Motor Co. and Suzuki Motor Corp. will shape their
strategies to narrow that gap.
Talks between the two automakers for a tie-up began after Mazda asked for the
hybrid parts from the world's largest automaker, the sources said.
Mazda, which had planned to enter the hybrid market after 2015, will be able to
roll out the model earlier if it can ink the deal with Toyota.
By selling to the Hiroshima Prefecture-based automaker, Toyota will also be
able to push down costs for the key hybrid components through mass production.
Toyota has previously provided its hybrid technology and parts to Nissan and
U.S. automaker Ford Motor Co.
On the back of booming demand for fuel-efficient cars, particularly for hybrids
like Toyota's best-selling new Prius, Toyota has been approached by automakers
other than Mazda for similar deals to supply hybrid parts, another senior
Toyota official said.
''We would like to widen our scope and respond (to the requests) as much as
possible,'' the official said.
Mazda, which has a business and capital alliance with Ford, has been working
with the U.S. automaker in the development of hybrid technology.
But the Japanese carmaker has been seeking other partnerships to expedite the
technology development after Ford reduced its equity stake in Mazda in the face
of tough business conditions caused by shrinking global auto sales.
While Nissan sees electric vehicles as one of the main pillars of its future
growth, industry observers said Japan's third-largest automaker may also seek a
new partner in hybrid technology since securing profits from the zero-emission
cars will still require some time.
And despite the near launch of its long-awaited EV in the United States and
Japan in fiscal 2010, critics said Nissan has suffered heavier decline in sales
compared with Toyota and Honda due to its conspicuous absence from the heated
hybrid competition.
Suzuki, which is working with struggling U.S. auto giant General Motors Corp.
in the development of hybrid cars, may also make a similar move in view of
speeding up technology development.
Meanwhile, Mazda shares soared on reports of the tie-up with Toyota, with its
share price rising 14 yen, or over 6 percent, to 240 yen on the Tokyo Stock
Exchange. Toyota also climbed 30 yen, or nearly 1 percent, to 3,500 yen.
==Kyodo
2009-07-16 22:34:30