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Toyota Agrees to Supply Hybrid Technology to Mazda

Toyota will provide its key hybrid technology to Mazda under a licensing agreement reached Monday, the two companies said.


Toyota Motor , the world's leader in hybrids, will supply Mazda Motor

the key components of its hybrid system used in the top-selling Prius, the two companies said in a joint statement.

That would allow Mazda, which does not have its own hybrid system, to develop and sell hybrids in Japan under its own brand by 2013, the companies said.

Toyota has been battling damage to its safety reputation from massive global recalls, including the third-generation Prius in Japan and abroad over a glitch in antilock braking.

Under the agreement, Mazda plans to develop its own hybrid vehicle for its home market by combining Toyota's hybrid system with its next-generation SKY engine, currently under development, the companies said.

Toyota already sells its gas-electric hybrid technology to Nissan Motor , Japan's No. 3 automaker, for vehicles Nissan sells in the U.S., and to Ford Motor , which has capital ties with Mazda.

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