TOKYO - Toyota Motor Corp. is considering a swap of engine technology with Volkswagen AG.
Toyota has agreed to license its direct-injection gasoline engine technology to VW. The licensing pact is part of a previously announced agreement to license Toyota's NOx catalyst technology, which is suited particularly for direct-injection gasoline engines, Toyota spokesman Shino Yamada said.
In addition, Toyota is considering buying direct-injection diesel engines from VW for use in luxury cars that Toyota will sell in Europe. No decision on that half of the swap has been reached, Yamada said.
Terms of the gasoline engine pact and the proposed diesel engine pact, including duration and volumes, were not revealed.
VW and Toyota have a number of other joint agreements in place, covering such areas as the sale of VW cars in Japan through a chain of Toyota-affiliated dealers and the transfer of VW's recycling technology to Toyota.