TOYOTA WILL use a new 1.0-liter engine being developed by Daihatsu to power its European-made car in the mini sgement. The car is due in 1999 or 2000.
A Toyota source said the three-cylinder gasoline engine will appear first in new versions of the Daihatsu Move and Cuore.
Those cars now use 660-850cc, three-cylinder engines dating back to 1985. Four-cylinder derivatives of the new engine will be used in the new Charade, expected next year.
Toyota controls Daihatsu with its 33.4 percent holding. Ex-Toyota executive Iichi Shingu became Daihatsu president last year.
Toyota is helping Daihatsu cut costs. 'Toyota is very good logistically, which is especially useful when, like us, you deal in small cars where parts are a high proportion of the price,' said Paul Williams, chief executive of Daihatsu UK.