Toyota Motor Corp. and BMW AG are in the final stage of negotiations over a deal that would see Toyota supply diesel engines for the German automaker's Mini line, company sources said Wednesday.
Should an accord be finalized, it would be the first time for the Japanese automaker to sell diesel engines to a company outside its group, they said.
Toyota has been pursuing the development of compact diesel engines and is aiming for an early return on its investments via supply deals with outside firms, they added.
Regarding its involvement with BMW, Toyota is considering supplying the German firm with a modified version of a 1,400cc diesel engine featured in the Toyota Yaris, a compact manufactured in France.