auto dealer in black and red logo
MenuMENU
SearchSEARCH

Rival Automakers Developing Alt-Fuel Engines

Japanese companies announce project to transform ICE technology.

May 28, 2024
Rival Automakers Developing Alt-Fuel Engines

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.

Credit:

Toyota

2 min to read


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

hands holding up a phone horizontally, zooming into a picture of a car
Industry•by Lauren Lawrence•October 23, 2026

More Than Specs

Today's car buyers want more than technical specs: they want to know the true value of the vehicle and how it fits into their lives.

Read More →
Auto Dealer Today, Dealer Debrief, 10/23/2026/ with Lauren Lawrence
Industry•by Lauren Lawrence•October 23, 2026

Q3 Auto Market Breakdown | Dealer Debrief

New-vehicle financing hit record highs in the third quarter, and negative equity continues to strain the market. Learn more in this week's Dealer Debrief!

Read More →
orange background behind a line of people with a crashed car in the middle
Industry•by Lauren Lawrence•October 16, 2026

Automaker Advances Safety for All

A new report by Volvo Cars Safety Centre analyzed the impact of 50 years' worth of research in automotive safety development

Read More →
Ad Loading...
The outside of a Jack Kain car dealership
Industry•by Hannah Mitchell•October 9, 2026

Kentucky Store Leaves Family

An auto group stretched across three states picked up the Lexington-area Ford fixture as its second store for the brand in the state.

Read More →
Auto Dealer Today, Dealer Debrief, 10/09/2026, with Lauren Lawrence
Industry•by Lauren Lawrence•October 9, 2026

U.S. Auto Brands Falling Behind

Asian auto brands are outpacing U.S. brands in stateside new-vehicle sales. Learn more in this week's Dealer Debrief with Lauren!

Read More →
Auto Dealer Today, Dealer Debrief, 10/02/2026, with Lauren Lawrence
Industry•by Lauren Lawrence•October 2, 2026

U.S. EV Market Update | Dealer Debrief

The U.S. electric vehicle market is slowly recovering from the loss of the federal EV tax credit last fall. Learn more in this week's Dealer Debrief!

Read More →
Ad Loading...
Q3 Financing Climbs, red arrow pointing down, percentage symbol, green arrow pointing up, Auto Dealer Today
Industry•by Lauren Lawrence•October 2, 2026

Auto Finance Numbers Set Records

Third-quarter data show how consumers are adapting to ongoing affordability challenges facing the new- and-used-vehicle markets.

Read More →
Cake with '50' candles on top
Industry•October 1, 2026

Auto Dealerships Can’t Afford to Ignore the 50+ Consumer

Younger generations may be all the buzz today when it comes to product marketing targets, but their older cohorts command a sizable share of purchasing power.

Read More →
Gray Toyota SUV parked outside of glass paned building
Industry•by Hannah Mitchell•September 25, 2026

Savings Seekers Boost U.S. Automakers’ Rivals

As consumers here look for ways to curb inflation’s affect on their budgets, brands offering plenty of alternative powertrains are closing in on home-grown OEMs.

Read More →
Ad Loading...
Various graphs and sheets of infographics laid out with handwritten post it notes.
Industry•by Lauren Lawrence•September 25, 2026

The Slow Electric Ascent

Second-quarter data show that the electric-vehicle market in the U.S. is inching up, the majority of states seeing a month-over-month increase.

Read More →