Daihatsu Motor Co., an affiliate of Toyota Motor Corp., likely will supply small gasoline engines to Dongfeng Motor Corp. this year, according to Japanese media.Daihatsu and Dongfeng are in final negotiations on a deal in which Daihatsu's plant in Indonesia would supply 50,000 1.0-liter or so engines, sources told Japan's Nikkei business publication.Meanwhile, Daihatsu has a contract to supply about 100,000 engines annually from its Indonesian plant to China FAW Group Corp, the Nikkei reported. Further details about the engines are unavailable.Dongfeng and FAW will use the engines in vehicles that carry their own brands. The companies are trying to boost fuel economy to comply with the central government's tougher standards.The government has ordered automakers to meet a fleetwide corporate average fuel economy target of 6.9 liters per 100 km (34 mpg) this year, and 5.0 liters per 100 km (47 mpg) in 2020.While producing cars under its Besturn, Xiali and Red Flag brands, FAW has joint ventures with Toyota and Volkswagen Group.Dongfeng builds cars under its Aeolus brand. It also runs passenger vehicle joint ventures with Honda Motor Co., Nissan Motor Corp., PSA Peugeot Citroen and Kia Motors Corp.Daihatsu, headquartered in Osaka, produces small vehicles with engines ranging from 1.0 to 1.5 liters.
Daihatsu likely to supply small engines to Dongfeng, report says
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