Mercedes parent company Daimler AG is in talks with Toyota over using the Japanese automaker’s hybrid technology. If a deal is struck, it would see Toyota provide Daimler with electric motors, batteries and technology.
Toyota has declined to comment on the report but has reiterated an earlier stance that it will consider requests from other automakers in search of its hybrid technology. Toyota already provides hybrid technology to Nissan, Mazda and Ford.
A hybrid deal between the two automakers would help Toyota cut production costs of its hybrid vehicles through economies of scale.
The arrangement is rumored to be a part of a larger partnership between the Japanese and German auto-giants that could see both parties work together on on fuel-cell technology as well.