Mike Stevens | Nov 30, 2011

Earlier this year, Toyota and Ford announced a partnership on hybrid technology for future SUV and light truck models. Now, the Japanese giant has reportedly signed a similar deal with BMW.

According to reports in Japan's Nikkei and Germany's Sueddeutsche Zeitung newspapers, the deal will see BMW supplying diesel engines to Toyota, in return for access to the brand's hybrid technology.

It is expected that Toyota will look to use BMW's 2.0 litre diesel engines in a number of its European-market models.

For BMW, the deal comes nearly one year after signing a dealing with PSA Peugeot-Citroen to develop hybrid powertrains for a range of subcompact vehicles.

Sueddeutsche Zeitung reports that the PSA deal will not be affected by the new partnership with Toyota, which is expected to be announced at this week's Tokyo Motor Show.

In the coming year, BMW will unveil production versions of its i3 electric vehicle and i8 hybrid sports car, while reports suggest that an i4 Coupe and i5 Sedan will follow.

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