We know that BMW and Toyota are currently working to produce a new sports car. Now, the German automaker is reportedly joining forces with Lexus to develop a new supercar.

According to Australian automotive website Motoring, BMW and Lexus are collaborating to produce a new supercar that will “outperform” the Audi R8. A source close to Lexus told Motoring that BMW wants to join forces in response to Audi's comment that “BMW does not have a supercar.”

Motoring reports that both BMW and Lexus have “jointly built a prototype in a mid-engined layout” with “full-time” AWD. The Australian website adds their source revealed that there are two power units which are currently under development. The power unit for BMW's supercar will be a “bespoke M-developed straight-six twin turbo” with plug-in hybrid system courtesy of Toyota.

Furthermore, BMW chose to partner with Lexus because of its work on the LFA. Motoring goes on by stating that the new supercar would “arrive just in time for the Tokyo Olympic Games in 2020.”

Source: Motoring