Ali B
08-25-1999, 11:20 AM
TOKYO (AP) -- Toyota Motor Corp. of Japan and Germany's Volkswagen AG have agreed to supply each other with fuel-efficient engines in a bid to remain competitive in world markets, a newspaper reported Wednesday.
The automakers see the move as a ``strong alliance'' amid a wave of global automobile reorganizations, the mass circulation Yomiuri newspaper said.
The Yomiuri, Japan's largest daily, cited sources close to both automakers but did not name them. A Toyota spokesman refused to comment on the report and Volkswagen officials in Tokyo could not immediately be reached Wednesday.
Under a basic agreement, Toyota will license to VW about 200 patents on its D-4, or direct-injection gasoline engines, the report said. A direct-injection engine is more fuel-efficient than conventional engines because of computer-controlled injection of fuel into cylinders.
VW, the largest European carmaker, starting next year will mount Toyota-supplied direct-engines on its new vehicles, the Yomiuri said.
In return, Toyota, Japan's largest automaker, will install VW-supplied direct-injection diesel engines in its luxury models to be sold in Europe, according to the report.
Toyota and VW plan to annually build a combined total of about 10 million direct-injection engines in their respective vehicles, the newspaper said.
The Yomiuri said the two auto giants are expected to conclude a contract shortly, and officially announce their partnership at this year's Tokyo Motor show, scheduled for October.
The automakers see the move as a ``strong alliance'' amid a wave of global automobile reorganizations, the mass circulation Yomiuri newspaper said.
The Yomiuri, Japan's largest daily, cited sources close to both automakers but did not name them. A Toyota spokesman refused to comment on the report and Volkswagen officials in Tokyo could not immediately be reached Wednesday.
Under a basic agreement, Toyota will license to VW about 200 patents on its D-4, or direct-injection gasoline engines, the report said. A direct-injection engine is more fuel-efficient than conventional engines because of computer-controlled injection of fuel into cylinders.
VW, the largest European carmaker, starting next year will mount Toyota-supplied direct-engines on its new vehicles, the Yomiuri said.
In return, Toyota, Japan's largest automaker, will install VW-supplied direct-injection diesel engines in its luxury models to be sold in Europe, according to the report.
Toyota and VW plan to annually build a combined total of about 10 million direct-injection engines in their respective vehicles, the newspaper said.
The Yomiuri said the two auto giants are expected to conclude a contract shortly, and officially announce their partnership at this year's Tokyo Motor show, scheduled for October.