Signed at the BMW Group headquarters in Munich by TMC president Akio Toyoda and BMW’s chairman of the board of management Norbert Reithofer, it continues a growing relationship between the two manufacturers. BMW and Toyota signed a similar agreement in March to co-develop lithium ion batteries.

Conventional technology is also included in the collaboration. BMW is to supply its 1.6 and 2.0-litre diesel engines to Toyota from 2014, and the two companies will work together to develop a sports car based on a shared platform and components.

Reithofer explained: ‘We aim to further strengthen our competitive position in sustainable future technologies. We signed a Memorandum of Understanding to this effect today.

‘Over the coming months, we will be exploring possibilities for further cooperation on the development of powertrain electrification, research into lightweight technologies, the development of fuel cells, and future vehicle architectures – for a sports car, for example.’

Toyoda added: ‘Toyota is strong in environment-friendly hybrids and fuel cells. On the other hand, I believe BMW’s strength is in developing sports cars. I am excited to think of the cars that will result from this relationship.’