Despite the back and forth last week (Toyota will be hybrid components, Toyota won't be supplying hybrid components), Toyota and Mazda did get together and ink a deal.

Expect Mazdas first hybrid sedan to show up in 2013, using hybrid components supplied by Toyota. Mazda will be piggy-backing on Toyota's already extensive research and practical use of hybrid technology, while Toyota will be helping reduce its own costs by the art of economies of scale.

Toyota has also supplied parts to Nissan over the past few years for the Nissan Altima Hybrid.

The Mazda hybrid may only be available in Japan (base on the following quote:
"Hybrids are spreading fast in Japan, and launching a model in the domestic market has become an urgent task," Mazda Executive Vice President Masaharu Yamaki told a joint news conference in Tokyo.

Mazda had to go elsewhere now that Ford is no longer as big a partner.

The press release from Mazda and Toyota:

Toyota Motor Corporation (TMC) and Mazda Motor Corporation (Mazda) have reached an agreement on the supply under license of hybrid technology used in the Toyota Prius.

Leveraging this agreement, Mazda plans to combine the hybrid system with its next-generation SKY* engine that is currently under development, and develop and manufacture a hybrid vehicle in Japan. Mazda is aiming to commence sales of a hybrid vehicle starting in Japan by 2013.

Positioning response to environmental issues as a management priority, TMC began sales of the Prius, the world's first mass-production hybrid vehicle, in 1997. Since then, over 2.3 million TMC-produced hybrid vehicles have been delivered to customers in over 70 countries and regions.

TMC recognizes the importance of benefiting the environment by encouraging the popularization of its eco-friendly technologies, which are represented by its hybrid systems. Accordingly, TMC has announced that it will consider requests from other companies to supply hybrid technology.

Based on its long-term vision for technology development, Sustainable Zoom-Zoom, Mazda aims to increase the average fuel economy of Mazda vehicles sold globally 30 percent by 2015, compared to its 2008 level. In order to offer all of its customers driving pleasure as well as outstanding eco-friendly and safety performance, Mazda is implementing a Building Block Strategy. Under this strategy, Mazda will enhance the core aspects of its vehicles - including engines, transmissions and weight reduction - and then progressively add electric devices such as idling stop, regenerative braking and hybrid systems.

Through this partnership, each company intends to offer technologies and products with outstanding environmental benefits to as many people as possible.

*Concept name for engines and transmissions that are intended for launch from 2011 onward.

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