Toyota to Supply BMW with Hybrid and Fuel Cell Technology, BMW Giving Toyota Diesel Engines

By Trevor Dorchies | June 25, 2012
More details from Toyota and BMW's green car joint-venture have been made public, and there's some serious swapping happening. The deal, which was originally announced in November of last year and finalized in March, says Toyota will give BMW its hybrid and fuel cell technology for diesel engines made by the German automaker. Back in November, BMW agreed to supply Toyota with a small-displacement clean-diesel engine to be used in vehicles in Europe beginning in 2014. In return, Toyota would work with BMW to flesh out the next-generation of lithium-ion batteries made specifically for hybrid vehicles. With this deal in place, consumers of both automakers now have access to hybrid and diesel technology, both of which save money at the pump. Toyota is searching for a way to increase production of its hybrid system while keeping production costs at a manageable level. This system has been made famous by Toyota's Prius, the best-selling hybrid vehicle ever. The Japanese automaker already has a few other similar deals in place with Ford, Subaru, and Mazda. No word quite yet on what will come of each. In trade, BMW will be giving Toyota diesel engines which are expected to fill a variety of applications. Rumors have been speculating that a diesel engine will find its way into the full-size Tundra especially if Chrysler pulls the trigger on a diesel Ram 1500. Others argue that sagging Tundra sales don't warrant new diesel technology. If Toyota decides to release diesel engines into the U.S. market in the near future, we expect Volkswagen, Audi, and Mercedes-Benz offerings to be its' main competition. An announcement with more details is expected later this week by Toyota President Akio Toyoda and BMW CEO Norbert Reithofer. Stay tuned as more details become available. Source: Automotive News (subscription required)
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