Toyota, BMW Sign Binding Agreements for Fuel-Cells, Sports Car

By Anna Mukai & Masatsugu Horie - Jan 24, 2013 1:35 PM GMT+0500

Toyota Motor Corp. (7203), the world’s biggest maker of gasoline-electric hybrid vehicles, signed a binding agreement with Bayerische Motoren Werke AG (BMW) to jointly develop fuel-cell systems for cars.

The two carmakers will also cooperate in developing a sports car, lightweight materials technology and lithium-air batteries, the companies said in a statement today.

The accord expands on an initial 2011 agreement for BMW to supply Toyota with diesel enginesas the automakers collaborate on research into next-generation lithium-ion batteries and other projects to develop fuel-saving technologies.

In June last year, the companies extended their cooperation to developing fuel cells, lightweight materials, electric powertains and sports car design.

As part of the cooperation, BMW has said it will supply Toyota with 1.6-liter and 2-liter engines for the Japanese company’s models in Europe starting in 2014.

The collaboration allows Toyota, Asia’s largest carmaker, to expand its European lineup of diesel-powered vehicles. For BMW, the partnership paves the way for the company to team up with the biggest producer of hybrid vehicles, as it seeks to fend off Volkswagen AG (VOW)’s Audi, which aims to take the luxury-car lead.

Under its new “i” sub-brand, BMW plans to introduce its first electric-powered car, the i3 city car, later this year. The model will be followed by the luxury i8 plug-in hybrid in 2014.

To contact the reporters on this story: Anna Mukai in Tokyo at amukai1@bloomberg.net; Masatsugu Horie in Osaka at mhorie3@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

Source: bloomberg.com