Volkswagen and DaimlerChrysler have agreed to form a partnership for the supply of 120,000 two-litre-four-valve diesel engines (100 kW/136 hp) a year.

The first deliveries will be made in 2005; the agreement runs until 2013.

The engines will be used in Chrysler brand vehicles as well as in future models of DaimlerChrysler's alliance partner Mitsubishi Motors (MMC).

These passenger cars will be marketed exclusively in Europe.