Nov 26 Toyota Motor Corp is in
talks with BMW AG for a partnership in environmental
vehicles, business daily Nikkei reported.
Under the proposed agreement, the German automaker will
provide diesel engines, most likely 2-liter versions for
midsize cars, for Toyota's passenger vehicles sold in Europe,
where its sales fell 9 percent in 2010, the newspaper said.
The starting date of the project and its scale are yet to be
decided, the financial paper said.
This is the Japanese automaker's second green-technology
tie-up with a foreign automaker giant, Nikkei said. In August
Toyota and Ford Motor Co agreed to together develop hybrid
trucks and SUVs.
Toyota hopes to improve the marketability of its diesel
vehicles by procuring engines from BMW as the strong yen
continues to hurt the price competitiveness of its hybrids,
The deal is expected to help Toyota reduce development
expenses by having domestic and Polish factories make diesel
engines for fewer models. However the Japanese company is
expected to share its technologies for hybrid systems if
requested, the daily reported.
BMW, on the other hand, will be able to expand its lineup of
green vehicles, having signed a deal last year with France's PSA
Peugeot Citroen Group to jointly develop hybrid systems for
subcompacts, the newspaper said.
The growing demand for green vehicles along with rising
crude oil prices have prompted major automakers to join forces
to slash costs, in order to cut vehicle prices, the Nikkei said.