BMW & Toyota Expand Relationship

[MTI]

Fuel Cell Development and Diesels

In March, BMW and Toyota signed an agreement to cooperate on developing lithium-ion battery cells having signed a memorandum of understanding in December. As part of the deal, BMW will supply Toyota's European division with 1.6 liter and 2.0 liter diesel engines from 2014.

The two companies have now decided to deepen their ties. "We respect each other—-and I think this is shown by our taking the next step only six months since the signing of our initial agreement," Toyota's Chief Executive Akio Toyoda said.

Mr. Toyoda said the companies want to combine Toyota's strength in hybrid technology and fuel cells with BMW's core competence in developing sports cars.

"I am excited to think of the cars that will result from this relationship," Mr. Toyoda said. The tie-up includes the "joint development of architecture and components for a future sports vehicle," BMW and Toyota said.

BMW's engine technology is regarded as state-of-the-art in the car industry. Toyota is known for its highly-efficient production methods and has pioneered the development of hybrid cars with its Prius model.