REPORT: Toyota hopes to boost profits by licensing hybrid technology
2010 Toyota Prius – Click above for high-res image gallery
Over the last ten years or so, Toyota has amassed a wide-ranging assortment of more than 2,000 patents related to its proprietary Hybrid Synergy Drive. That's an impressive figure to be sure, and it's also a possible source of income as more and more automakers follow Toyota's lead by introducing hybrid vehicles of their own.
Because Toyota has the hybrid patent market on straight lockdown, it's likely that rival automakers will be forced to license certain parts of the Japanese automaker's design, which could potentially help boost Toyota's bottom line. Says Gouichiro Kuriyama, a manager in Toyota's product planning division:
Our system is the best technology for hybrids to get the best carbon dioxide emissions and best fuel economy. [Rivals] will not be able to compete.Indeed, both Ford and Nissan have licensed Toyota hybrid technology in the past. Both of those automakers, though, already have or are planning new hybrid systems and fully electric vehicles of their own design. Furthermore, alternatives like the Voltec powertrain from General Motors take a different path to arrive at the same gasoline-saving goal as Toyota's Hybrid Synergy Drive and European automakers like Volkswagen, BMW and Mercedes-Benz are counting on diesel technologies to reduce fuel consumption.
Gallery: 2010 Toyota Prius
[Source: Wall Street Journal]
Reader Comments (Page 1 of 1)
carnut 7:48PM (7/02/2009)
That anyone can have a patent lock on anything is utter BS - especially in an area like hybrids where so many different ways to achieve the same results are possible.
What Toyota *do* have a lock on is the technology that puts them at a cost advantage (after having spent billions either developing or subsidizing the initial generation of technologies). For that, they are reaping the rewards now and will continue to do so. That technology, however, won't be free to licencees - they will have to pay stiff royalties, and also will have to be dependent on Toyota's parts and supply base for their product plans.
No self-respecting OEM is going to want to put the future of their image products in the hands of a competitor. Plus, the licensing eventually degenerates to Toyota becoming a parts supplier and nothing more - no transfer of know-how and stiff royalties.
Nissan is a prime example- they got access to the technology to look like they were in the game (as much of their resources have been spent developing diesels in Europe). Now, they figured out that a slightly more expensive, slightly less competitive, but home-grown technology is better in the long-run.
Ford had to do this becuase they were using a Toyota supplier's technology.
To refresh everyone's memory, Ford HEV technology came from Aisin Warner when Ford bought Volvo in late 90s or early 2000s). Aisin Warner were also an outside supplier for Toyota developing Gen 1 Prius technology back in mid/late 90s, and when Toyota decided to go with their own version of design, they let Aisin Warner loose to do what they saw fit with the rival technology Aisin Warner had developed. Aisin Warner supplied it to Volvo etc.
Bottom line is that there were some key elements in both Toyota and Aisin Warner designs that were similar (not the same), and Ford were reminded of this by Toyota to extract whatever rent they could out of their prior investment in Aisin Warner technology. So, Ford did what was a cross-licensing deal with Toyota - mainly as a defensive measure and not because they were actually using any of the specific elements of Toyota hybrid system.
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Ignatius 9:16PM (7/02/2009)
Well, they'll certainly have a boost in lawsuits.
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Rahul 3:28AM (7/03/2009)
The Hybrid Synergy Drive is a better technology. It will be very efficient in reducing carbon dioxide emission. These days a person's Dream car is becoming a Green Car.
Rahul
Indian Car Advisor
(Carazoo.com)
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Alan 4:51AM (7/03/2009)
It's great and all that, but the technology isn't really new now (which of course has advantages since it's well proven). At the end of the day though it's a more complicated more expensive system that gets all energy from liquid fuels. A step change is needed in automotive propulsion, just hoping that we now have the 'perfect storm' for that to happen quickly, I'm kind of fed up with waiting!
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oollyoumn 6:38AM (7/03/2009)
According to Ford, they have a cross license agreement that cost Ford zero dollars. Ford also has many patents on their hybrid drivetrain and claim the new Fusion Hybrid is the most patented car in history.
I have a gen 3 Prius, and it is very efficient, but from what I've read Ford has more efficient regenerative braking, capturing about 94%v' of the cars kinetic energy during stopping. From my driving experience I would be surprised if my Prius comes close to that level.
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the4thheat 10:47AM (7/03/2009)
Zero dollars yes but they gave up clean diesel patents that saved Toyota a lot of money themselves on developing a clean diesel. Otherwise Toyota would have either had to have sunk tons of money into R&D to figure out how to get a cleaner diesel while not violating the Ford patents or they would have had to pay Ford royalties for the diesel tech.
It's nice that Ford has enough of a patent library that they don't have to always pay cash, but it's not like they didn't have to give up a source of revenue with the patents.
Gary 11:21AM (7/03/2009)
More evidence that Toyota is not on a mission to save the planet. They are out to make a buck like every other car manufacturer.
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usbseawolf2000 7:28PM (7/03/2009)
Licensing to others would achieve widespread use of HSD. This will lower the gasoline usage. Toyota is not holding on to their patents and not let anyone else use the system.
The irony is that the NiMH battery chemistry that HSD use was held up with patents by the oil company.
Luke 8:02PM (7/03/2009)
Good news is that a lot of the patents from the 90's will expire in just a few years. Then the real competition and cost reduction will begin.
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