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Toyota and Mazda have signed an agreement to work together and share technologies, and besides Toyota reportedly providing fuel-cell and hybrid tech in return for Mazda’s SkyActiv engine tech, a new report by motoring.com.au indicates some of the wheeled fruits of their labour.

Specifically, what is suggested is a Toyota Prius-based SUV with a 1.5 litre SkyActiv-D diesel engine. According to the report, Toyota wants the Mazda motor in its SUVs and MPVs, as the SkyActiv engine’s low- to mid-range torque is currently wanting in Toyota hybrids.

A source told motoring.com.au that this SUV, like Toyota hybrids, could have a range well in excess of 800 km, but offer “a far better driving experience.” The 2014 Paris show’s Toyota C-HR concept (pictured) is as good a crystal ball as any here – will it be hybridised as well?

The SkyActiv-D motor would help Toyota make strides on the Continent – despite reports of the EU planning to discourage diesel in favour of electric power, the Japanese giant is likely to drop Mazda’s diesel engine into everything from the Aygo to the Lexus LS, reports motoring.com.au. The Toyota Verso and Avensis already use BMW-derived diesel engines.

Meanwhile, Zoom Zoom wants to go Zap Zap – Mazda apparently wants to use Toyota’s fuel-cell and plug-in hybrid tech for its first electric vehicle (EV), which will allow it to satisfy the tough Zero Emission Vehicle (ZEV) regulations coming into force in California in 2018. Of course, there should be a Toyota-badged version as well.

The front-wheel drive EV, which will be BMW i3-sized, will target the US and Japanese markets, have a range of around 200 km and aim to be priced at about US$30,000 (RM112,800). motoring.com.au also doesn’t rule out that it could simply end up as a reskinned Mirai, although the Mirai is a fuel-cell electric vehicle as opposed to a battery-electric vehicle.

Such a joint project is expected to save on R&D for both companies and stimulate the fuel-cell industry – with regards to building more hydrogen refuelling stations – while also meeting ZEV regulations. The publication speculates that the joint-venture could also help Mazda with its much-delayed rotary revival – possibly involving dual-fuel petrol/hydrogen capability.

Toyota’s other collabs include the 86/BRZ with Subaru, a new Supra/Z4 with BMW and a new Yaris/Mazda 2 to be built in Mexico for the US.

Toyota C-HR concept at 2014 Paris Motor Show