Toyota Motor Corp and truckmaker Isuzu Motors Ltd will cooperate in developing and producing small diesel engines for the European market, the companies said today.
The agreement will allow Toyota, Japan's top automaker, to take advantage of Isuzu's highly reputed diesel technology. Their talks on this collaboration began last November.
Production of the 1.6 liter diesel engines for use in Toyota vehicles sold in Europe will start 2012, the companies said in a statement.
Demand for diesel vehicles is growing especially in Europe because of worries about global warming. Diesel fuel is widely known for good mileage, and recent innovations have made diesel cleaner.
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