Daimler and Toray to Establish Carbon Fiber JV

Daimler AG and Japanese textile maker Toray Industries Inc. say they are setting up a joint venture to make carbon fiber-based car parts aimed at vehicle weight reduction technology and improving the fuel economy of cars.

The announcement follows the companies' joint development agreement last April in the area of vehicle weight reduction, where competition is intensifying as a way to boost fuel efficiency in automobiles.

The 825,000 euro ($1.12 million) joint venture will be controlled 50.1 percent by Toray, 44.9 percent by Daimler and the remaining five percent by other parties.

The plant which will be in charge with creating the new parts will be located in Esslingen, Germany.

Carbon fiber reinforced plastic is much lighter than sheet steel and aluminum, making vehicles potentially more energy efficient.

Whereas at first the parts will be more used in sports car, as soon as the new JV (whose name is yet to be decided) begins mass production, the reduction in cost is hoped to allow the integration of these parts into regular passenger cars as well.

Toray is already working with Nissan and Honda on a carbon fiber reinforced plastic for use in auto bodies.