Japanese auto giant Toyota Motor Corp. is in talks to supply Daimler AG with parts and technologies for hybrid vehicles, Nikkei newspaper reported on Thursday.

According to the the Japanese newspaper, German company Daimler approached Toyota and is looking to use the Japanese automaker’s technology and core components, including the motors and batteries in its hybrid vehicles.

The deal would make Daimler, the maker of Mercedes-Benz cars, the fourth automaker to receive Toyota’s hybrid technology, following Nissan Motor Co., Ford Motor Co. and Mazda Motor Corp.

Sales of components to Daimler would help Toyota expand production of hybrid vehicles that run on gasoline and electricity, and thus reduce costs, Nikkei said.

The automakers will also consider forming a broad alliance that would also cover cars powered by fuel cells.

Toyota, which has been troubled by the massive vehicle recalls earlier this year, declined to confirm the reports, but acknowledged interest in expanding its supply of hybrid technology to rival car makers.

Both consumers and car makers around the world are looking to cut costs by opting hybrid vehicles and electric vehicles.

Toyota introduced the world’s first mass-produced hybrid electric car, the Toyota Prius in 1997, and it went on to become the most successful hybrid to date. In return, Daimler launched its first hybrid model, the Mercedes Benz S Class limousine, last year.