Toyota, Mazda to hold joint briefing on green tech

Toyota Motor Corp and Mazda Motor Corp said they would hold a joint news conference in Tokyo on Monday to announce what many expect to be a supply deal for Toyota's industry-leading hybrid system.

Japan's No.1 and No.5 carmakers have been discussing the possibility behind the scenes since at least mid-2009 as the popularity of gasoline-electric cars surged in Japan with the help of generous government subsidies.

Toyota Executive Vice President Takeshi Uchiyamada and Mazda Executive Vice President Masaharu Yamaki will brief the media at the 5:40 p.m. (0840 GMT) news conference, the two companies said.

Hybrid cars, which improve fuel efficiency by twinning internal combustion engines with electric motors, are seen as crucial for automakers to boost sales in coming years as governments introduce stricter environmental regulations.

Gasoline-electric cars have enjoyed a burst of demand especially in Japan over the last year as the government introduced an exemption on certain taxes on gasoline-electric and other next-generation vehicles for a three-year period.

An agreement between Toyota and Mazda would underscore the growing need for smaller carmakers to find partners to fill the technology gap without draining their limited resources. Among others, archrivals Daimler AG and BMW AG are also working together on hybrid development.

DISTANCING FORD

A Toyota-Mazda pairing would also highlight a distancing of Mazda from top shareholder Ford Motor Co, which is among the few automakers today with a proprietary hybrid system after it initially licensed some technology from Toyota.

Ford and Mazda continue to share some vehicle platforms and operate joint factories, but insiders have said relations have cooled to match the U.S. automaker's diminished stake in the Hiroshima-based automaker, from a controlling 33.4 percent.