BMW, Toyota confirm engine link

BMW and Toyota have confirmed their engine technology collaboration plans. The two automotive giants will supply engines to each other, with BMW offering its 1.6 and 2.0-litre diesel engines to Toyota Motor Europe in exchange for the Japanese company’s hybrid technology and expertise.

BMW’s engine supply will begin in 2014 and will be installed in certain Toyota-produced vehicles planned for sale in the European market as part of Toyota’s planned expansion of its diesel-powered range.

The deal is described as a ‘mid-to-long-term collaboration’ and the two companies will carry out joint-research in the field of next-generation lithium-ion battery technologies. The scope of the deal could be broadened to include other projects.

In a joint-press conference in Tokyo, BMW’s sales and marketing chief Ian Robertson said, “As we see it, both companies set the benchmark in complementary fields. Toyota has a wealth of experience to offer when it comes to battery technology, and the BMW Group has long been at the forefront developing some of the most technologically advanced clean diesel engines available.”

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. 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 even better cars."

The deal was announced as BMW celebrates 30 years in Japan. The Munich marquee launched its new BMW ActiveHybrid 5 at this week’s Tokyo Motor Show.