Toyota, Nissan join forces for standardized electronics

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, according to a report from the Reuters news agency. The companies stated that cooperation would allow them to spend less on developing and improving the base software needed to run the electronic systems and more on actual electronic products such as power windows and cruise control systems. “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 by two Toyota group companies. 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. A study by Japan’s Ministry of Economy, Trade and Industry estimated that Japanese automakers collectively spend around 100 billion yen ($US 915 million) a year on software development — 10 times the outlays from a decade ago. Costs have been forecast to rise to around $US 10 billion by 2014, according to METI.