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Toyota, Nissan Join to Standardize Car Electronics
Toyota, Nissan Join to Standardize Car Electronics
Thu Sep 9, 2004 05:43 AM ET
TOKYO (Reuters) - Toyota Motor Corp. and Nissan Motor Co. will join hands in a bid to save costs and create an international standard for the software that operates a car's electronic systems.
Japan's top two auto makers said on Thursday the tie-up would allow them to spend less on developing and improving the base software needed to run the electronic systems, comparable to a computer's operating system, and more on actual electronic products such as power windows and cruise control systems.
It is in the latter areas that car makers compete.
"This will allow us to spend less on areas in which we don't need to compete," a Nissan spokesman said.
The two companies will work together through a non-profit entity called JASPAR (Japan Automotive Software Platform and Architecture), set up on Wednesday by two Toyota group companies, including Toyota Tsusho Corp.
JASPAR is also seeking participation by other auto makers and car electronics-related firms in the hope of becoming the first to create an international standard.
Similar groups already exist, led by European manufacturers such as DaimlerChrysler AG, BMW AG and Bosch, but no common platform has been formed to date.
Spokesmen at Toyota and Nissan said the outlook for potential savings was unknown.
But a study by Japan's Ministry of Economy, Trade and Industry estimated that Japanese auto makers collectively spend around 100 billion yen ($915 million) a year on software development -- 10 times the outlays from a decade ago.
Costs have been forecast to balloon by another 10 times to around $10 billion by 2014, according to METI.
Electronics have long since replaced the mechanics in a car's braking and steering, and are expected to be used more as auto makers build cleaner and safer cars with gadgets such as cruise control and lane keeping systems.
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