Toyota-BMW agreement: Lexus will not use BMW diesel engines image

Toyota agreed this month to equip some of its vehicles with BMW diesel engines.

BMW confirmed its 1.6-liter and 2.0-liter four-cylinder diesel engines will be installed in selective Toyota models beginning 2014, but the deal will not be available for Lexus too.

”The agreement with BMW does not include any supply of BMW engines to Lexus,” Toyota Europe representative Etienne Plas told Autonews Europe.

“We don’t have any concerns,” BMW’s development chief Klaus Draeger said. “The engines are not planned for use in the Lexus brand.”

Professor Ferdinand Dudenoeffer of the Center for Automotive research at the University of Duisburg-Essen, German, added that due to perception and reputation, Lexus would be better positioned as an innovator of plug-in and full hybrid vehicles.

However, that deal will be good for Toyota sales and good for BMW’s bottom line, and collaborating on next generation lithium ion batteries is a sensible move to utilize Toyota’s experience, and BMW’s bank balance, to share the burden of R & D.

“Fundamentally we are both engineering companies, so in many aspects we have found we speak the same language, and it is interesting to see what can be achieved when Japanese engineering meets European engineering and when the cooperation really works,” Toyota Motor Europe President and CEO Didier LeRoy told a news conference.

BMW said it is entering its first collaboration with a Japanese automaker because of Toyota’s prowess in hybrids.

Toyota has sold more than 3.4 million hybrids worldwide so far, including models other than the pioneering hit Prius.