Toyota, Mazda Ponder Expanded Tech Swap

Toyota Motor Corp. and Mazda Motor Corp. are in talks about sharing powertrain technologies, says the Nihon Keizai.

The plan would expand a current partnership in which Toyota supplies hybrid technology for certain Mazda cars. In return, Mazda is preparing to build a variant of its new Mazda2 minicar at its factory in Salamanca, Mexico. The car, to be marketed in the U.S. as the Scion iA, will use Mazda's fuel-saving Skyactiv engines.

The newspaper says the companies are discussing a plan in which Toyota would provide its more advanced plug-in hybrid and fuel cell technologies to Mazda. In return, Toyota would gain access to Mazda's SkyActiv diesel and gasoline engine knowhow.

Sources tell Bloomberg News the expanded partnership won't involve capital investments. Spokespersons for the two companies say nothing has been finalized.