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. Last Updated: 07/27/2016

Toyota in Joint Project

TOKYO -- Toyota Motor Corp. of Japan and Germany's Volkswagen AG have agreed to mutually supply fuel-efficient engines in a bid to remain competitive in world markets, a newspaper reported Wednesday.

The automakers see the move as a "strong alliance'' amid a wave of global automobile reorganizations, the mass circulation Yomiuri newspaper said. The Yomiuri cited sources close to both automakers but did not name them.

Among other projects, Toyota and Volkswagen are already cooperating on the development of car navigation systems and recycling of auto parts but "presently nothing has been decided on other areas of cooperation,'' said Shino Yamada, a spokeswoman for Toyota.