Work of partnerships ON DISPLAY
Tech alliances share development costs, drive innovation and bring new products to market faster
If, while wandering around the displays at the Canadian International AutoShow, which closes today at 6 p.m., you start thinking a lot of the cars look similar, don’t worry — you haven’t lost your mind.
There is indeed a lot of similarity out there, and it isn’t happening by accident.
While many carmakers have been sharing technology and powertrains between in-house brands for decades (HondaAcura, Ford-Lincoln, Volkswagen-Audi, etc.), something else has been going on over the past 10 years or so that is bringing more even jointly developed products to market.
What I’m talking about are technical alliances or partnerships that exist between manufacturers. These alliances, and there are more out there than the few I’m going to mention here, are being forged primarily to share development costs, drive innovation and bring new products to market faster.
Essentially, the manufacturers are pooling their resources. Think of it as strength in numbers.
This list is by no means comprehensive, but it covers a few of the big technical partnerships and the vehicles they have produced to date, some of which are on display at the show. Toyota/ Mazda Toyota’s agreement with Mazda covers a few key areas, including joint development of electric vehicle, connected-car and advanced safety technologies, expanded complementary products and a new jointly funded and operated U.S. production facility. Last November, Mazda Toyota Manufacturing
U.S.A. Inc. broke ground on a new $1.6-billion (U.S.) plant in Huntsville, Ala., that will build up to 300,000 vehicles annually when it opens in 2021. It is slated to build the Toyota Corolla and a yet-to-be-revealed Mazda crossover. Toyota/Subaru One of the most well-documented alliances is the ToyotaSubaru partnership that has been building the Toyota 86 (née Scion FR-S) and the Subaru BRZ sports coupes since 2012. The two cars have some separate styling details and are packaged and priced differently, but they utilize the shared powertrains, are built on a common architecture and are all as- sembled in the same Subaru plant in Japan. It’s worth noting Toyota also owns a 16-per-cent stake in Subaru. Renault/Nissan/ Mitsubishi This partnership dates to 1999 when Nissan, which was loaded with debt and teetering on the edge of bankruptcy, began what would turn out to be a deep alliance with French auto giant Renault. Renault initially bought a 36.8-per-cent stake in Nissan (now 44 per cent) while Nissan bought 15 per cent of Renault. The partnership saved Nissan, and within a couple of years, the company was profitable once again. In 2016, Nissan bought a 34-per-cent stake in Mitsubishi, which brought the latter into what is now known as the Renault-Nissan-Mitsubishi Alliance. Because Renault vehicles aren’t sold in North America, the platform and powertrain sharing within the Alliance is not as visible here, but that will change over the next few years once Mitsubishi is more integrated into the Alliance and starts to build vehicles from shared platforms. BMW/Toyota BMW and Toyota announced their collaboration plans way back in 2011, and while that partnership has expanded to cover things such as the development of fuel cells and future lithium battery technology, the one part of the agreement that is clearly visible on the show floor is sports cars. The 2019 BMW Z4 convertible and the 2020 Toyota GR Supra coupe are products of this marriage and share a common BMW platform and engine (3.0-litre turbocharged inline six-cylinder) and are built by Magna Steyr in Graz, Austria. Magna Steyr is a subsidiary of Canadian-owned auto supplier Magna International. Ford/Volkswagen Just announced at the auto show in Detroit last month, the alliance between Ford and Volkswagen won’t involve in any cross-ownership between the two and will be focused on jointly developed commercial vans and mid-size pickup trucks for world markets beginning in 2022. The joint venture will also involve collaboration on autonomous vehicles, electric vehicles and mobility services. Hyundai/Kia This one isn’t an alliance per se, but a technology and platform-sharing arrangement due to both Korean companies having ownership stakes in the other: Hyundai owns roughly onethird (33.88 per cent) of Kia while Kia is a part owner in many Hyundai subsidiaries with stakes that range from 5.23 to 45.37 per cent.
From a product standpoint, it basically means that many — but not all — vehicles from both companies share common platforms, powertrains and components. This is also true of the relationship Hyundai has with its in-house luxury division, Genesis.
Agood recent example of platform and powertrain sharing between these brands is the Genesis G70 and Kia Stinger. Both sedans share engines, transmissions and are built from a common architecture while retaining unique styling.