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BMW to supply diesel engines for Toyota

2 December 2012

Toyota Motor Europe and BMW signed a contract under which BMW is to supply 1.6 liter and 2.0 liter diesel engines for Toyota starting in 2014. The engines will be installed in certain Toyota vehicles for the European market. Through this agreement, Toyota plans to expand its European lineup and sales of diesel-powered vehicles.

Toyota’s sales in Europe fell 9.5% to about 430,000 vehicles in the first 10 months of 2011, according to Reuters. One of the factors has been the lack of diesel models, as the company had been shifting its focus to hybrids and away from diesels. However, other factors played a role as well, including the supply constrains after the earthquake and tsunami in March.

The BMW Group and Toyota Motor Corporation (TMC) also announced a memorandum of understanding (MOU) concerning a mid-to-long-term collaboration on next-generation environment-friendly technologies. Under the MOU, the two companies will collaborate on lithium-ion battery research. The companies also plan to discuss other possible collaborative projects.

Source: BMW