A report from German paper Auto Motor und Sport says Toyota is considering a partnership with European heavy-weight Daimler.
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After Toyota's recent collaboration with Aston Martin on a small car project, the idea may not be as silly as it sounds.

The alliance could see Toyota produce its own versions of Mercedes-Benz's A- and B- Class vehicles (using its own MC platform), and maybe even stretch things so far as to collaborate on models including the Lexus LS and Mercedes-Benz S-Class.

But the report has been dismissed by a European Toyota representative who said: "It’s part of our normal business practice that we regularly talk to other carmakers but there are no specific projects planned at the moment."

Were the partnership to come to fruition Toyota could step up its presence in the European marketplace, especially where Lexus is concerned.