DaimlerChrysler (DC) is to buy up to 120,000 Volkswagen diesel engines a year to use in Chrysler and Mitsubishi models, according to Autocar magazine.

The report said the new models will, from 2005, get VW’s latest two-litre, four-cylinder turbodiesel engine, first seen in the Touran minivan now on sale across Europe and in the UK.

Citing DC officials, Autocar added that earlier plans to use the Mercedes-Benz 2.2-litre, four-cylinder common rail diesel [available in the European market Chrysler PT Cruiser] were dropped due to a lack of production capacity and high cost.

Mercedes also currently supplies a 2.7-litre, five-cylinder turbodiesel for DC’s European specification Jeep Grand Cherokee. The smaller Cherokee (Liberty in the US) gets 2.5- and 2.8-litre Italian-made VM turbodiesels.