BMW and ToyotaBy Christiaan Hetzner

MUNICH -- German premium carmaker BMW and Japan's Toyota Motor Corp agreed to extend their cooperation to a bigger strategic alliance on Friday in a challenge to global rivals as competition intensifies.

The agreement means BMW (BAMXF.PK) will cease further efforts to cooperate with General Motors (GM) and its partner PSA Peugeot Citroen.

There were few details of specifics, but the agreement echoes the pact between Mercedes parent Daimler and Renault-Nissan.

It could also bolster the two against Volkswagen, which seeks to topple BMW from its top spot in the luxury market with its Audi range, and Toyota (TM) as the world's biggest car producer.

BMW chief executive Norbert Reithofer and Toyota's Akio Toyoda signed a statement expressing their intention to work together after separate deals to collaborate in four new fields.

BMW and Toyota emphasised that there was no intention of building stakes in each other's businesses.

"We are not coming together to become bigger. We are not coming together to form capital ties," Toyoda told reporters In Munich, "I met Chairman Reithofer again today, and I felt the relationship of trust between our two companies grow stronger."

As part of the deal, the two companies will work together on fuel cells and electrified powertrains -- for electric cars -- in which Toyota is strong.

BMW, meanwhile, can help Toyota reduce its cars' weight. The German company has taken a leading role in carbon fiber, a lightweight, superstrong and expensive material that so far mainly can be found in high end sports cars.

BMW also plans to assist Toyota in developing a sports car architecture, an area where the Japanese company has struggled.

A BMW spokesman said that there would now be no more talks on further cooperation with GM. He said discussions were also underway with France's PSA Peugeot Citroen -- allied with GM -- on dissolving a joint venture on components for hybrid cars.

Reithofer said, however, that BMW and Peugeot would continue honoring the existing project-based partnership to build small four-cylinder gas engines.

Peugeot said last week it was looking at its joint venture with BMW in light of its partnership with GM. Peugeot spokesman Pierre-Olivier Salmon gave no further comment after the BMW-Toyota announcement.

For more on this story, visit AOL Autos.





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juststeve35

German and Japanese Industries aligning in cooperative efforts...

Sounds interesting, as long as the swastika doesn't also have a resurgence as it did the last time these two nations teamed up, eh?

June 29 2012 at 3:27 PM Report abuse +1 rate up rate down Reply
ghowe1941

Now then, did we only win the battle and they won the war?

June 29 2012 at 1:10 PM Report abuse +2 rate up rate down Reply
koos458

Most of my driving is around town (Coos Bay) in my beater Saturn. When we make a long drive to visit family in Spokane or San Francisco, we rent a nice car. So far an Avalon has been the nicest. The thing is that we can rent a car once a month and it is far cheaper than buying it. What I pay isn't even enough to cover the depretiation of value. Buying a new car is the biggest waste of money you can make.

June 29 2012 at 12:54 PM Report abuse +1 rate up rate down Reply
balticstein

they've done this before remember WW2

June 29 2012 at 10:58 AM Report abuse +1 rate up rate down Reply
2 replies to balticstein's comment
jzanier468

That is exactly what I was thinking. The Axis is back.

June 29 2012 at 11:31 AM Report abuse +2 rate up rate down Reply
Michael

LOL - The government and union did not take over GM back then - but thanx anyway, I needed a laugh

June 29 2012 at 12:45 PM Report abuse rate up rate down Reply
1 reply to Michael's comment
juststeve35

Mikey?

Yer a toad LOL

He was talking about Germany and Japan, NOT GM...

Paranoia? Or is it just lousy reading comprehension skills???

June 29 2012 at 3:26 PM Report abuse +1 rate up rate down