Japan's Toyota, Mazda eye green alliance: Report

PUBLISHED ON MAY 9, 2015 12:45 PM

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Visitors looking at a Toyota Motor's vehicle, displayed at the company's showroom in Tokyo, Japan on May 8, 2015. -- PHOTO: REUTERS

TOKYO (AFP) - Japanese automakers Toyota and Mazda are considering a comprehensive tie-up in environmentally-friendly technology amid tightening regulations to cut greenhouse gas and tough emerging market competition, a report said on Saturday.

The two companies are in the final stages of talks on the planned partnership, the Nikkei business daily said, adding that the two "intend to reach an accord in principle soon".

Under the partnership, Toyota plans to supply fuel cell and plug-in-hybrid technology to Mazda, which has lagged in electric-vehicle technology, the newspaper said.

In return, Mazda will consider offering its proprietary "Skyactiv" green technology to Toyota, which it hopes to use to grow its line of fuel-efficient gasoline and diesel vehicles.