Just two days after our first rumors started circulating on the web, Toyota and BMW confirmed that they intend to collaborate in the development of hybrid systems and diesel engines.

On Thursday, the two companies announced that they signed a Memorandum of Understanding (MoU) concerning the mid-to-long development of environmental-friendly technologies.

As expected, the two companies will join forces in developing the next-generation of lithium-ion batteries. BMW has already tested a fleet of the electric Mini E, and features three hybrids in its range, the most recent of which, the ActiveHybrid 5, was unveiled yesterday at the 42nd Tokyo Motor Show. It is also readying the production versions of the i3 EV city car and the i8 hybrid sports car.

Nevertheless, Toyota’s much greater expertise on the matter will prove vital since it was the company that essentially kick-started the hybrid segment 14 years ago with the first-generation of the Prius.

Diesels, however, are a very rare sight in its range, since they are not popular in Japan or North America. That’s where BMW’s diesel-know how comes in to play, since the Bavarian company will supply Toyota Motor Europe with 1.6- and 2.0-liter diesel engines from 2014.

BMW Chairman Norbert Reithofer 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.”

For his part, Toyota’s President Akio Toyoda commented: “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.”

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