BMW and Lexus will not do business

Lexus will not be sourcing diesel engines from BMW it has been confirmed.

We announced previously that Toyota, the owner of Lexus are combining with BMW to lend expertise to one another, in our article named “The BMW and Toyota deal”. The deal will not be extended to Toyota’s luxury brand.

BMW and Toyota

The deal between BMW and Toyota involves the Japanese company using diesel engines supplied by the German luxury manufacturers for some of their vehicles. The company’s highly efficient diesel 1.6 litre and 2.0 litre four cylinder engines are the components in question.

The deal also involves both companies working together to create battery technology for hybrid powered cars. The budget will now be shared which eases the pressure off Toyota by a considerable amount. BMW’s bank balance is sure to help cover the research and development with ease.

A first for BMW

BMW were persuaded to go ahead with the deal after thanks to Toyota’s dominance in the hybrid market. They are the current market leader in that particular segment, with 3.4 million hybrid vehicles sold worldwide. This is the first time that BMW have ever gone into partnership with a Japanese company. A better partner couldn’t have been chosen in our opinion.

A lot in common

Didier LeRoy, the Toyota Motor Europe President and CEO said that both companies have a great connection. His exact words were “Fundamentally we are both engineering companies, so in many aspects we have found we speak the same language, and it is interesting to see what can be achieved when Japanese engineering meets European engineering and when the cooperation really works,”

Why Toyota and not Lexus

Why will BMW not extend the partnership to Lexus? The reason is simple. BMW do not want another luxury manufacturer to benefit from their technology. Allowing Lexus to take advantage would mean they would be able to get closer to BMW in terms of quality.

Imagine if BMW did lend their diesel engines to Lexus? It would allow them to further expose the market of economical luxury cars. BMW are dominant in the diesel engine sector in terms of luxury cars and they certainly want to keep it that way.