A New Stream of Income for Toyota

The largest automaker in the world is looking toward more advancements in the market to find another way to make money. That, at least, would be the end result for Toyota, but the initial idea for this new stream of income is to bring advancements to the market that would make it possible for other automakers to save a lot of money in regards to R&D costs over the time of a model being brought to market. This new way of doing business would allow other automakers to meet the stricter emissions and development regulations being enforced around the globe.

What Toyota plans to do is find a way to sell entire hybrid powertrains to competitors to allow the competitor to save the money they would have spent researching the best way to bring a hybrid or EV model to the market. As the leader in the market for hybrid vehicles with a diverse selection from the Prius sedan to the RAV4 Hybrid SUV, Toyota has the ability to offer affordable and scalable powertrain options to its competition to help them handle the need to be able to bring vehicles to the market that meet or exceed the emissions requirements put on them by the governing officials in the markets they sell in.

While this program would offer Toyota the ability to enjoy a new stream of income in the market, Toyota would have to develop the right technology to match up with the competitors so these powertrains could be used the right way. The challenge in the past has been hybrid parts that couldn’t fit other brands which Toyota had developed. Selling the whole package would solve this challenge completely and help other automakers bring more hybrid and EV models to the market faster. If you haven’t noticed, there are more low-emissions high efficiency vehicles on the road now than ever before, making a huge difference in the market.

This won’t just be a huge win for Toyota, but if other brands already use Toyota as the supplier of their hybrid powertrains the other brand will be able to focus on design, technology and packages for their vehicles. This certainly is a great way for both Toyota and their competitors to develop and improve the market with excellent new hybrid vehicles that could fill every part of the market for us. In the future we may even have our pickup trucks built with a Toyota sourced hybrid powertrain to give us a way to have excellent vehicles to drive.

Yes, Toyota would continue to grow with a program of providing hybrid powertrains to the other brands of the world, but so would these other brands. Research and development costs have risen over the last several years to be at an all-time high. This program would help to alleviate some of these costs and bring some of the most impressive powertrains to the rest of the automotive market. Overall, this sounds like a huge win all the way around if Toyota is able to make it happen and start providing the equipment needed to the rest of the world.

01.10.17 - Wads of Money

Written by Rocco Penn

A tech blogger, social media analyst, and general promoter of all things positive in the world. “Bring it. I’m ready.” Find me on Twitter, Facebook, and Google+.