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BMW to Supply Toyota with Diesel Engines

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BMW and Toyota have announced a new partnership which will see BMW supplying its 1.6L and 2.0L diesel engines to Toyota starting in 2014. The engines will be used in certain Toyota models in Europe, so don't expect to see a BMW diesel engine under the hood of a Toyota in the U.S. anytime soon.

The two automakers have agreed on a collaborative research in the field of next-generation lithium-ion battery technologies. In addition, they have agreed to identify and discuss other possible collaborative projects.

Marking the announcement, Norbert Reithofer, Chairman of the Board of Management of BMW AG, said: "Toyota is the leading provider of environment-friendly series technology in the volume segment and the BMW Group is the most innovative and sustainable manufacturer of premium automobiles. We are now joining forces to further develop environment-friendly technologies and to expand our innovation leadership in each of our segments. Supplying Toyota with our fuel efficient and dynamic diesel engines represents another important step in the planned expansion of our sales activities for engines and powertrain systems."

Representing TMC, President Akio Toyoda said: "It is a great joy and a thrill to enter into this mid-to-long-term collaborative relationship with BMW, a company with its own culture and history from its many years of car manufacturing in Europe, and a company that makes cars that are fun to drive. In the spirit of contributing to furthering the development of the auto industry and society, both companies will bring their wide-ranging knowledge - starting with that concerning environmental technologies - to the table and make ever-better cars."

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