Possible Partnership with BMW?

News has emerged of a potential partnership between BMW and Toyota (and by extension, Lexus), with BMW supplying diesel engines in return for access to Toyota’s hybrid technology — here’s a summary from Automotive News:

The partnership may be announced at the Tokyo auto show this week, Japan’s Nikkei newspaper and Germany’s Sueddeutsche Zeitung said.

Under the proposed agreement, BMW will provide diesel engines, most likely 2.0-liter versions, for Toyota passenger vehicles sold in the European market, the Nikkei said.

The starting date of the project and its scale are yet to be decided, the paper said.

The Sueddeutsche Zeitung said BMW would gain access to Toyota’s hybrid technology through the partnership. Both companies would benefit from huge savings on investment costs, the paper said.

Despite its long-term viability, Lexus’ hybrid-only strategy has been hurting the brand’s growth in Europe, where diesel is the engine choice of over 50% of buyers across the continent — the opportunity to use proven BMW diesel engines would bring an immediate jumpstart for both Toyota & Lexus, although at the expense of sharing its leading-edge hybrid technology.

With both BMW and Toyota officials refusing to comment, this remains nothing but a promising rumor, and may not even be the real story — the word today is that the two companies could instead be discussing a partnership to develop lithium-ion batteries for electric cars.

[Source: Automotive News]

Not bad BMW owns one of the best engines out there!!!! while Lexus has one of the finest products out there. Why not??? Take the bite! [+]
Makes sense for both sides, as BMW needs to stop being a slob when it comes to efficiency for stricter CAFE regulations, and Lexus needs those diesels to get over in Europe. BD
  • R
  • November 29, 2011
Very good, I was hope for Toyota own Diesel ... but since BMW's Diesel not bad too, so I accept it!
  • B
  • November 29, 2011
It seems like a fantastic idea, im not totally sold on the reliability of BMW engines, as mine needs service alot...
  • S
    Sebastien Kroetsch
  • November 29, 2011
In my opinion Toyota/Lexus' hybrid technology is worth a lot more long term than BMW's diesel engines. I'd be putting my bet on the lithium-ion batteries joint venture. Toyota and Lexus should concentrate on diesel-electric hybrids instead, at least before any other manufacurer hence BMW takes advantage of that most promising fuel efficiency combo.
    Of course you're right, but the diesel engine is worth many more sales to Toyota than the hybrid is to BMW. BMW needs the hybrid to get corporate averages up Toyota needs a diesel just to make a sale overseas BD
Doesn't Toyota have a small stake in Isuzu, owns Hino and have a history of strong diesel engines though in small trucks etc, they can easily develop their own diesel for a car if they want to. I bet it's for the battery venture. Toyota already shares their hybrid tech with other manufactures but not against competition like BMW in a market they are trying to conquer which is the most difficult for them to do
    Toyota's stock diesel isn't so good , for example the Toyota Hilux ... 2.5-liter Turbo only produce like 100hp while opponent all 120hp+ , BUT with some tuning (without put the engine on danger zone) on ECU can push the power to something like 160hp+ . Toyota actually good on Diesel but they just doesn't really go develop it .
  • B
  • November 29, 2011
I would pass, why share some info on hybrid tech when Toyota is leading the world in with it's competitor for Lexus. I mean, they did a thing with Ford, it's reasonable but I wouldn't go for BMW, and I hate the amount of clowns that drive them on the street thinking they're so badass. Would love to have a monster truck and run them over.
  • O
  • December 1, 2011
It's official