Rival Automakers Developing Alt-Fuel Engines
Japanese companies announce project to transform ICE technology.

The companies called their technology 'highly efficient and powerful,' and that the more compact engines would make space for improved, more aerodynamic vehicle design, along with greater fuel efficiency.
Toyota
Three Japanese automakers said they’re developing internal-combustion engines to support low emissions as they seek to achieve net-zero pollution.
Mazda, Subaru and Toyota announced the project at a press conference Tuesday, saying they’re working to integrate the engine technology with motors, batteries and “other electric drive units.”
They said the more compact engines will use carbon-neutral fuels in order to “decarbonize” ICE.
The effort aligns with Toyota’s resistance to putting all of its power train eggs in one basket, particularly under former CEO Akio Toyoda, who stepped down and took the chairman role last year, though its new CEO, Koji Sato, quickly set the opposite target. The developing technology may be a way to split the difference and achieve carbon neutralily at the same time. It has lately appeared prescient as electric-vehicle adoption has flattened and hybrid sales taken off.
The three automakers said they’ve tested alternative fuels through their racing teams, including liquid hydrogen, and that the new engines would be compatible with those. Toyota said they will seek to integrate the developing technology with electric technology.
“This process has clarified the role that future engines will play in achieving carbon neutrality,” Toyota said in a press release. “With the next generation of engines, the three companies will seek to not only improve standalone engine performance but also optimize their integration with electric drive units, harnessing the advantages of each.”
The companies called their technology “highly efficient and powerful,” and that the more compact engines would make space for improved, more aerodynamic vehicle design, along with greater fuel efficiency.
“Even as Subaru, Toyota, and Mazda compete in the product arena with unique engines and cars, the companies have a shared dedication to achieving carbon neutrality through a multi-pathway approach,” the press release said.
More Industry

Toyota Financial Services Adds to HQ
The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.
Read More →
Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
Dealer Debrief: New-Vehicle Sales Update
In this week's debrief, host Lauren Lawrence discusses the state of new-vehicle sales.
Read More →
Color Your Ride
The first vehicles by startup automaker Slate will come with the option of a medley of wraps in five colors familiar from your childhood.
Read More →
China Leads Global EV Sales
Globally, electric-vehicle sales are continuing their upward trajectory, buoyed by Chinese exports, as the North American region continues to lag behind.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Optimized Charging Could Reduce Costs
According to an Alliance for Automotive Innovation analysis, optimized EV charging could cut costs for drivers and improve grid infrastructure - potential adoption incentives.
Read More →
June Automotive Boon?
A forecast for this month’s new-vehicle sales tells a familiar 2026 story: Year-over-year comparisons must be made in light of last year’s aberrations.
Read More →
Safety Improvements Save Lives
Over the past 30 years, automakers have made many safety tweaks to their vehicles. An insurance industry testing group says that's largely thanks to its crash-worthiness program and that prevented fatalities are the clear result.
Read More →
Indiana Dealership Changes Hands
The Chicago-area CDJR store has been in business for nearly 70 years and is now part of a fast-growing automotive group spread across six states.
Read More →
