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Discussion Starter · #1 ·
Anyone curious as to why car makers are partnering up like they are in great numbers these days, this article will explain motivations behind it.

Full Article: http://www.autoguide.com/auto-news/2015/07/why-are-so-many-automakers-partnering-up-.html

Scion’s latest sedan is made by Mazda, while Mercedes’ latest EV uses Tesla technology. BMW and Toyota are also working on a new sports car together. Automakers all over the world are collaborating on new products, but why?

The concept of automakers working together isn’t new, but the reasons for doing so might not be incredibly obvious. As the automotive industry expands worldwide, the costs associated with making a car increases accordingly, so automakers have to find ways to cut costs without cutting quality or stifling innovation.

“In this day and age, the research and development of a new vehicle for a major automaker has become a global project and can cost billions of dollars,” said Tim Urquhart, Principal Analyst at IHS Automotive. “The more of that cost you can share with another automaker, the better.”

When designing a new car, automakers have a number of targets to hit that require a lot of costly research. Meeting safety and fuel-economy standards are among the most expensive parts of developing a car, and then you have to consider the different markets it is sold in, as each region may have a different set of rules.

“Look at global emission standards, for example,” Urquhart said. New cars are required to be more fuel efficient than ever before. “If you’re looking at conventional internal combustion engine technology, it’ll be difficult to achieve those higher standards, so automakers will start to look to plug-in hybrid and electric vehicle technology,” he said.

Not only is that kind of technology expensive to develop compared to the tried and true internal combustion engine, but it can also be new territory for an automaker. What’s an automaker to do in an area where it has no expertise? Pay huge amounts of money for research, get help from someone who’s already an expert, or collaborate with someone who shares similar goals?
 

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I might have missed it in the past but this is the first time reading about Mazda's allotment to Toyota/Scion, never realized it was 50,000:


“In the very original stages of planning Mazda2 production, we had always intended that there were going to be 50,000 vehicles intended for Toyota,” said Jeremy Brown from Mazda USA’s public relations team. “That’s now known as the Scion iA (and Toyota Yaris in Canada).”
 

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I see this as part of the whole auto industry consolidation thing that FCA talks about all the time. Instead of mergers, many companies are just choosing to work together in partnerships to share costs and learn from one another.
 

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They learned the hard way in the past and now it's all about that, cutting down on initial costs and so far there have been examples of how it helps with a product that ends up performing poor... the Scion FR-S and Subaru BRZ being a couple of them.
 

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Because Toyota wants sex and Mazda needs a sugar daddy., MAzda has the zippy appeal but is poor like a busty blonde, so theire trading the only thing they have to trade, their sex appeal... Toyota is in a grey business suit, bored as can be looking to toss a bit of cash around and enjoy the company of someone young and lively ;)
 

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Because Toyota wants sex and Mazda needs a sugar daddy., MAzda has the zippy appeal but is poor like a busty blonde, so theire trading the only thing they have to trade, their sex appeal... Toyota is in a grey business suit, bored as can be looking to toss a bit of cash around and enjoy the company of someone young and lively ;)
Best way to sum up what you said:

 

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To be more serious again though. Does that mean that the way that Toyota is helping Mazda is by simply giving them money? Or is Toyota providing some type of research of technology as well?
 

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That could be one of the things, which in the end still works out better for Toyota, no need to develop that platform or that vehicle, they just pull everything directly from Mazda, saving themselves a lot of money in the end and risk (more importantly).
 

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Discussion Starter · #11 ·
To be more serious again though. Does that mean that the way that Toyota is helping Mazda is by simply giving them money? Or is Toyota providing some type of research of technology as well?
This is the key take away:

What’s an automaker to do in an area where it has no expertise? Pay huge amounts of money for research, get help from someone who’s already an expert, or collaborate with someone who shares similar goals?
 
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