Toyota and BMW enter research agreement and engine procurement deal
Toyota Motor Corp. and BMW AG forged a partnership that will conduct research on lithium-ion batteries for next-generation green cars. The deal does not involve capital tie-ups, and both companies, which plan to roll out battery-powered vehicles in the future, will share the development costs for the batteries they will produce. BMW will also supply diesel engines for Toyota, which marks the first time that the Japanese car maker has entered into an engine procurement agreement with a competitor. Toyota has a power train line which ranges from combustion engines to hybrid and fuel-cell systems. Earlier, in 2002 and 2005, Toyota supplied BMW with a 1.6-liter diesel engine for its Mini range. BMW Board Member Klaus Draeger emphasized that the research agreement with the Japanese firm will not affect the joint venture of BMW with France’s Peugeot Citroen SA, which involves the development of technology for hybrid gasoline-electric vehicles. (December 2, 2011)