Toyota and Mazda are discussing to expand their technological partnership as the two Japanese automakers reportedly plans to sign a powertrain sharing agreement.

Unnamed sources told Reuters that Toyota and Mazda are working on a deal to expand their partnership as “global automakers face rising costs to comply with stricter emmision regulations.”

Under the said technological partnership, Mazda would receive fuel-cell and plug-in hybrid technology from Toyota. In return, Toyota would get Mazda's SkyActiv gasoline and diesel engines.

In addition, sources said that Mazda has been trying to develop their own fuel-cell vehicle (FCV) but decided to work with Toyota which produces the Mirai.

As of this writing, Toyota and Mazda have yet to release an official statement regarding the issue at hand.

Source: Reuters