BMW and Toyota to swap engines

Rumors out of Europe say there is a planned engine swap deal between BMW and Toyota about to be announced.

Set to be made public at the Tokyo motor show this week, the cooperation is said to center on BMW supplying Toyota with four- and six-cylinder diesel engines. In return, Toyota plans to provide BMW with technology used to combine combustion engines and electric motors in various hybrid applications.

Newspapers in Germany and Japan have reported that the automakers are prepared to announce the powertrain plan this week. Toyota and BMW labeled the reports as speculation and declined to comment.