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THU

01-Dec-2011

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Toyota, BMW to Exchange Fuel Efficient Technology

BMW will supply diesel engines to Toyota in exchange for hybrid engine technology.

Japan's Toyota and Germany's BMW are apparently in partnership negotiations to develop eco-friendly cars. This would be the latest pairing between global automakers after Renault and Mercedes-Benz agreed in September to develop compact cars together.

Under the deal, BMW would supply diesel engines for compact cars to Toyota, while Toyota would transfer hybrid car technology to the German firm, the Nihon Keizai Shimbun reported Saturday.

The aim is to respond to tougher fuel efficiency and environmental regulations and growing economic uncertainty, the daily speculated.

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