Toyota Motor Corp. and BMW AG have sealed partnership Thursday as they made public in a joint news conference the collaboration to develop eco-friendly vehicles, Kyodo News reported.
The short- to long-term partnership covers a joint undertaking on research lithium-ion batteries with BMW supplying 1.6-liter and 2.0-liter clean diesel engines to Toyota Motor Europe for sale in the European market.
It is projected that demand for environment-friendly vehicles would expand as it is seen to contribute in lowering carbon dioxide emissions and in anticipation for stricter emission regulations.
Earlier in the week, a press report said the two automakers are discussing possible tie-up but neither Toyota nor BMW offered confirmation.
The tie-up would be the second time for the Japanese auto giant Toyota to enter into a partnership with a major foreign carmaker for a green technology. It previously entered into a deal with Ford of the United States to develop hybrid-vehicle systems.
On the other hand, this would be the first time for the German automaker to enter into a partnership with a Japanese carmaker. Previously, BMW is said to have partnered with France’s PSA Peugeot Citroen Group in latter part of 2010 to come up with hybrid systems for subcompacts.