The need for more environmentally-friendly technologies made BMW and Toyota to team up.

Based on a memorandum of understanding (MOU) both parties signed during Tokyo Motor Show, BMW will be supplying the Japanese car maker with 1.6 liter and 2.0 liter diesel engines from 2014. In return Toyota will help the Bavarians with their ambitoius hybrid projects with their years of experience in this market.

TMC will be using BMW engines in certain Toyota-produced vehicles planned for sale in the European market. Through this agreement, Toyota plans to expand its European lineup and sales of fuel-efficient, low CO2-emission diesel-powered vehicles.

Marking the announcement, Norbert Reithofer, Chairman of the Board of Management of BMW AG, said: “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. We are now joining forces to further develop environment-friendly technologies and to expand our innovation leadership in each of our segments. Supplying Toyota with our fuel efficient and dynamic diesel engines represents another important step in the planned expansion of our sales activities for engines and powertrain systems.”

Representing TMC, President Akio Toyoda said: “It is a great joy and a thrill to enter into this mid-to-long-term collaborative relationship with BMW, a company with its own culture and history from its many years of car manufacturing in Europe, and a company that makes cars that are fun to drive. In the spirit of contributing to furthering the development of the auto industry and society, both companies will bring their wide-ranging knowledge – starting with that concerning environmental technologies – to the table and make ever-better cars.”