Tag: toyota to share secrets
Toyota is well known for having one of the best hybrid power trains on the market and for being the leader of hybrid vehicles overall. That’s all thanks to the long line of Prius vehicles sold by the automaker. While that accomplishment on its own is pretty impressive, it’s very cool to see what the automaker is trying to do with all research and development that went into the Prius drive train. Rather than holding it hostage at just the Toyota company, the automaker is actually planning on opening up the platform to other automakers as well. That probably sounds pretty crazy at first, but it’s actually a pretty smart move for the automaker.
It’s a Solid Business Decision
Toyota already has the Prius brand backing its company and it’s not going to stop selling vehicles anytime soon. With such a large following, the automaker likely doesn’t need exclusive access to its hybrid powertrain in order to successfully earn profits and continue selling vehicles in the future. That’s exactly why the automaker is planning on opening up the powertrain to competitors. Because it could save Toyota huge costs in the future.
Make Production More Affordable
Toyota would continue to handle the research and development that goes into make a truly excellent power-train, but it would then share its findings with other automakers in the industry. By sharing specific details around its power-train, Toyota is generating additional customers for the parts suppliers that create the power-train components for Toyota. This could help lower costs over time.
Right now Toyota is the only company that makes use of these highly specific powertrains and the automaker is the only business that is buying from these parts suppliers. By being the exclusive purchaser of parts from the company, the company has to charge Toyota high prices. As soon as additional buyers come to the part supplier, they will be able to lower part prices substantially. Higher purchase volumes and more interest should make a big difference for overall parts prices, which will drive costs for Toyota down significantly.
It might still sound like a crazy idea to share its industry secrets, but Toyota is confident in its brand and the products that it has to offer. It’s this confidence that will enable Toyota to give away such valuable information and help out the entire industry in the process.
More Advanced Hybrids and EVs in the Future
By giving away all the secrets behind the Prius power train, Toyota is also furthering its own research. Automakers will likely build on the current technology and help speed along research and development. All that work and effort should help create an even more effective vehicle for the automaker and lower research, development and production costs substantially.