Toyota has denied reports that it has extended an agreement with General Motors (GM) to research fuel cell technology.

It had been claimed that the two companies were meeting to discuss extending the current agreement, which sees the two manufacturers working in partnership to develop a viable way of using fuel cells to power their vehicles.

GM chairman Rick Wagoner and Toyota president Katsuaki Watanabe met in Tokyo on Wednesday, but a spokesman for Toyota told Reuters that the pair did not agree on an extension of the current arrangement, which runs out in March.

Analysts are keen to see movement on the agreement, as the two companies have so far remained tight-lipped on the fruits of the partnership, while both have independently developed their own hydrogen fuel-cell vehicles.

Toyota's investment in hybrid technology looks set to help push the manufacturer above GM as the world's largest car producer in 2006, while GM continues to suffer from falling sales.


Ÿ Adfero Ltd