Automotive News reports Lexus won't be getting any diesel engines from BMW as part of the new collaboration between parent company Toyota and the German automaker. BMW and Toyota are set to team up on next-generation green technology, though the two will apparently stick to crafting a new lithium-ion battery instead of swapping diesel tech. BMW will serve up a few small-displacement diesel engines for use in European Toyota models, but it won't supply direct-competitor Lexus with any oil-burning lumps. Right now, European buyers can expect to see 1.6-liter and 2.0-liter BMW diesel engines to show up under the hoods of certain Toyota products soon.

That should help Toyota immensely in a market where 52 percent of all vehicles sold are diesels. Lexus, meanwhile, will continue to focus on plug-in hybrid and hybrid models to position itself as a niche innovation company. Automotive News reports Lexus has nailed down a European market share of just 0.2 percent over the past 11 months.


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    • 1 Second Ago
  • 14 Comments
      Lachmund
      • 3 Years Ago
      knowing the 1.6 is a co development with PSA (peugeot, citroen), does that mean toyota made a deal with PSA tech?
      jinsanai
      • 3 Years Ago
      Lexus (Toyota) is a very Synergic brand. They had been very successful with Ford, GM, Lotus, Nissan, Yamaha, Subaru, Tesla, and many others. It sets a great standard within competitions. So excited to see what Akio Toyoda has for 2012.
      • 3 Years Ago
      [blocked]
      Avinash Machado
      • 3 Years Ago
      The Europeans do not seem to consider Lexus as a credible luxury alternative to the Germans.
        Mirko
        • 3 Years Ago
        @Avinash Machado
        Toyota has lots of diesels. There are three diesels for the Auris alone, and the new 1.5 diesel in the Yaris is getting good reviews. I'm confused they are not supplying Lexus with diesels. The IS is only available with the 2.2, which is neither refined nor economical enough to compete with something like a 320d. All other Lexi don't even have a diesel option.
          imoore
          • 3 Years Ago
          @Mirko
          "I'm confused they are not supplying Lexus with diesels." Despite it's small market share, Lexus is still a headache for BMW. BMW need to aid its competition to steal more sales from them.
          David J. Bernstein
          • 3 Years Ago
          @Mirko
          @ imoore Lexus isn't a threat to BMW in Europe. Lexus isn't even a threat on the global scale. The only place where Lexus is successful is in North America. I love the Lexus press releases for Europe where they talk about 50% sales increase because in 2010 they sold 50 GSs in Germany and in 2011 they sold another 50. Wow, what a threat to BMW they are. Their biggest markets in Europe are the UK and Russia. Nobody buys a Lexus in Western Europe. Oh, and supplying Lexus with diesel engines doesn't make sense. Here's why. 1) Directly aiding a "competitor" - not good for business. 2) If consumers know about the BMW engine in a Lexus, well, they may as well go for the BMW. Period.
          Andrew Nicolaou
          • 3 Years Ago
          @Mirko
          The Yaris is a 1.4 D-4D actually and its immensely economical
        timber
        • 3 Years Ago
        @Avinash Machado
        Lexus has a image problem in Europe but Lexus cars aren't also built according to European taste both in styling, handling and engine options. In short Lexus aren't built with Europeans in consideration so Europeans don't consider them. Even Toyota itself is suffering of the same problems. Bland styling, lack of cabin quality and lack of engines options (diesel mainly). Petrol hybrids just aren't good enough.
          Lachmund
          • 3 Years Ago
          @timber
          the quality may be great, but toyota/lexus desperately needs capable designers. who should buy a lexus if every citroen looks much better?!
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