MUNICH -- BMW and Toyota Motor Corp. said they will work together on green car technologies including the joint development of lithium-ion batteries. BMW will also supply diesel engines to Toyota in Europe as part of the tie-up.
The two automakers signed a memorandum of understanding at the Tokyo auto show on Thursday for a mid- to long-term collaboration on next-generation environment-friendly technologies.
They agreed on joint research in lithium-ion battery technologies for electric and hybrid cars and said they will identify and discuss other possible collaborative projects.
BMW CEO Norbert Reithofer said the two automakers are joining forces to expand their innovation leadership. "Toyota is the leading provider of environment-friendly series technology in the volume segment and the BMW Group is the most innovative and sustainable manufacturer of premium automobiles," he said in a statement.
Reithofer said supplying diesel engines to Toyota is another step in BMW's plans to expand of sales of its engines and powertrain systems.
The diesel tie-up with BMW represents a reversal in Toyota's strategy after it scrapped plans two years ago to develop 1.6-liter diesel engines with Japanese truck maker Isuzu Motors Ltd, in which it owns a 5.9 percent stake.