BMW and Toyota have officially announced today they have agreed to a research collaboration into next generation environmental friendly technologies, confirming rumours that we reported on earlier this week.

BMW and Toyota have officially announced today they have signed a memorandum of understanding for a research collaboration into next generation environmental friendly technologies, confirming rumours that we reported on earlier this week.

Toyota Motor Europe (TME) will benefit from the supply of BMW's fuel efficient yet powerful 1.6 liter and 2.0 liter diesel engines. The German automaker will begin supply in 2014.

Norbert Reithofer, Chairman of the Board of Management of BMW AG, 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 system."

Toyota, President Akio Toyoda said: "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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Official: BMW to supply diesel engines to Toyota