You might think that it’s odd for competitors to work together but that’s exactly what’s happening in the car industry. Many companies have seen their sales dwindling as a result of the economy and have decided to join forces in order to produce more efficient vehicles. We are also seeing many brands working together with software companies in order to create state of the art technology. In order to make up for lost sales in the U.S many companies have explored foreign markets such as China.

China currently has the biggest global economy in the world and the potential to sell vehicles there is massive. At the same time, the Chinese government was taking major steps to develop that country’s own auto industry. Each side knew that they could help the other. So major partnerships were created between the Western and Chinese entities. The auto manufacturers from Europe, America and Asia were able to sell their goods in the Chinese market. They also helped the Chinese government build and develop their own automotive industry. Today China is the largest auto market on Earth and just about every major brand of car is sold there.

Gas efficiency is another prominent issue that auto makers need to address. Many consumers are interested in hybrid cars due to rising gas costs. Some companies are working together and splitting the costs since research and development can be quite costly. So we are seeing Daimler, the parent company of Mercedes-Benz, partnering with Chinese battery and auto maker BYD to help in the development of electric vehicle technologies. PSA Peugeot Citroen is known worldwide as an expert in diesel technology. Mitsubishi is currently working with Peugeot in order to build electric autos. Volkswagen partnered with Porsche to help the luxury car maker develop high performance engines that are also eco conscious.

Companies used to work on building technology by themselves. However, the level of technology is more complex nowadays and who better to work with on this issue than with one of the biggest software companies in the world, Microsoft? Infotainment systems like the Ford Sync and MyFord Touch was developed through a collaboration between Ford and Microsoft. Microsoft has since developed partnerships with other car manufacturers to help them create their own infotainment systems.

Many manufacturers are also interested in developing electric models for their lineup. LG is working in conjunction with Ford in order to build batteries for electric autos. Moreover, General Motors and Reva have partnered to produce a zero emission car for India. In addition, Daimler became the first major auto maker to buy a stake in Tesla Motors, an electric car manufacturer.

Competition can be beneficial when it comes to inspiring innovation but it appears that teamwork can do the same. Developing new technology is extremely expensive and by working together, companies can share the costs as well as the knowledge. Many of the technology we have today is thanks to the collaboration of different companies. It looks like team work is a great thing!

Author Bio: Written by Lexus Carrera – Irvine Used Cadillac and Used Hyundai Orange County offer great prices on cars in Orange County. Our Cadillac Costa Mesa serves the cities of Newport Beach and Irvine in O.C

Category: Automotive
Keywords: auto partnerships, car partnerships, car joint ventures, auto joint ventures