New BMW-Toyota deal doesn't include diesels for Lexus

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.