Toyota and VW's truck subsidiaries form partnership

They will work together on self-driving trucks and emissions reduction.

Hino, the heavy-duty truck subsidiary of Toyota, is partnering with Volkswagen's truck and bus division. The two firms intend to reduce development costs associated with self-driving technology and reducing emissions.

According to Reuters, the two firms "will consider cooperating in areas such as diesel and gasoline-electric hybrid engines, connectivity and self-driving technologies, adding their combined output could offer economies of scale in research and development (R&D) as well as procurement."

The partnership would not impact the passenger car businesses of each firm's respective parent companies. However, the two rivals, who at times have both held the crown of world's largest automaker, told Reuters that R&D spending would otherwise be two to three times what the partnership allows. In addition, they will also be able to bring the technologies to market sooner than if they worked independently.

Volkswagen Truck & Bus is the world's largest commercial vehicle manufacturer and operates mainly in Europe. Its portfolio includes the brands MAN, Scania, and stakes in China's Sinotruk and America's Navistar International.

Toyota has held a majority stake in Hino Motors since 1965. Prior to that, it made passenger cars and light trucks, but turned its attention exclusively to heavy duty trucks and buses after joining with Toyota. Hino's operations are based primarily in Asia.

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