German-Nipponese alliances are not going out of style, the Volkswagen/Suzuki soap notwithstanding. Toyota and BMW cut a diesel deal – if The Nikkei [sub] is correctly informed. They ran the story very early in the Japanese Saturday morning; hence no comment from Toyota is available. We’ll ask on Sunday, when we’ll see that mysterious RWD sports car.
According to The Nikkei, BMW will supply diesel engines for Toyota’s passenger vehicles sold in Europe. When and how many is unclear.
Toyota is betting heavily on hybrids, but Europeans are hybrid-averse and prefer diesel instead. Not having diesel options misses more than half of the market. However, with only a 4 percent share of the European market, spending too much time and money on diesel engines does not make sense for Toyota.
BMW on the other hand needs the volume, and is willing to sell diesel engines to anyone with money. “Toyota is expected to share its technologies for hybrid systems and related areas if requested,” says The Nikkei.