Toyota, Exxon to Develop Fuel Technology

Exxon Corp. and Toyota Motor Corp. said they will jointly develop fuel and engine technology for cleaner-burning and more fuel-efficient cars and trucks. Irving, Texas-based Exxon, the second-largest publicly traded oil company in the U.S., and Toyota, Japan’s largest auto maker, plan to develop direct-injection diesel and hybrid electric-gasoline engines as well as fuels and other lubricants for those engines. “In the short term, our goal is to reduce vehicle emissions,” said Akihiro Wada, executive vice president of Toyota. “Our long-term goal is to develop more efficient, next-generation power sources.” Toyota already has one hybrid electric vehicle, the Prius, that it sells in Japan. The compact car uses a standard gasoline engine as its main power source. A nickel-metal hydride battery powers the car at low speed, when conventional engines tend to burn fuel inefficiently. Exxon shares fell $1.63 to close at $69.56 on the NYSE.