CORRECTED - UPDATE 1-Toyota mulls cooperation with Daimler-report

(Corrects stock symbol for Toyota in first paragraph. The error first occurred in the spot story) (Adds details from report, background)

FRANKFURT/STUTTGART, Germany, July 1 (Reuters) - Toyota (7203.T) is considering building derivatives of Mercedes-Benz's (DAIGn.DE) A-Class and B-Class cars on its own so-called MC platform to better utilise its European plants in the long term, a German magazine said on Wednesday.

Citing sources at Toyota's Tokyo headquarters, auto motor und sport wrote that the company was thinking about the generation of Mercedes compacts due to follow the upcoming version, which is scheduled to be introduced in 2011.

Typically, model lifecycle can last at least 6 years, so any production at a Toyota factory would not likely happen until at least 2017.

According to the article, the two companies could also look at sharing development costs and even examine the possible joint production of Toyota's Lexus LS flagship luxury saloon and its Mercedes counterpart, the S-Class, the best selling car in its segment.

"It's part of our normal business practice that we regularly talk to other carmakers but there are no specific projects planned at the moment," a spokeswoman for Toyota Motor Europe said.

Daimler called the report "speculation", declining to comment further. (Reporting by Christiaan Hetzner and Hendrik Sackmann; Editing by Greg Mahlich)