Daihatsu Near Deal to Supply Engines to Dongfeng Motor

Toyota Motor Corp. affiliate Daihatsu Motor Co. is close to a deal to supply small engines to China's Dongfeng Motor Corp., sources tell The Nikkei.

The newspaper says the deal involves about 50,000 1-liter gasoline engines. The powerplants would be supplied from Daihatsu's engine plant in Indonesia.

The factory already supplies some 100,000 engines annually to FAW Group Corp., with whom Toyota partners in China. The Nikkei's sources say Daihatsu also is in talks to supply engines to China's BAIC Group, which is allied with Daimler AG.

Daihatsu believes its efforts to sell engines to Toyota competitors will make it more profitable and thus help the Toyota Group overall, according to the report.