Daimler and Toyota are engaged in negotiating a new deal, so that Daimler may earn the license of Toyota’s Hybrid technology. So far, Daimler has been developing its own hybrid drivetrain technology. Mercedes S400 Hybrid is one such vehicle developed by Daimler. It was the first mass produced hybrid vehicle which possessed a lithium ion battery pack.
If the deal is in place, Toyota will provide Daimler with motors and batteries in addition to the hybrid technology. Daimler will become the fourth automaker company receiving Toyota’s hybrid parts and technology, the first three being Ford, Nissan and Mazda. The deal is likely to generate good news for the customers and the environment as well because of the expecting reduction in the coast of hybrid vehicles and smog and carbon-di-oxide emissions.
It is assumed that the Toyota is making the deal with a motive of reducing the cost of all the hybrid R&D they’ve been doing and to increase economies of scale. They can also sell their techs and parts at a premium cost as compared to what they cost them. As far as Daimler is considered, it is negotiating the deal since it wants to spend the money on a proven technology rather than investing in R&D.
The S400 hybrid technology may not be as flexible as Toyota’s drivetrain and can’t be as easily used in much smaller cars like the Mercedes A Class. These are likely to be the other reasons. Media and customers are making more guesses regarding this new move.