Toyota has set itself up as one of the top hybrid makers in the world with the development of one of the first hybrid vehicles, the Prius. They share their technology with companies like Nissan, Mazda and Ford, which allows them to produce hybrids in larger numbers while keeping the cost down. Recently, Toyota has partnered with Tesla Motors to develop and electric version of Toyota’s RAV4 crossover. The RAV4 EV will be making its debut at this years LA Auto show, and will begin selling the model to the public in 2012.

Japanese media reported this Friday that Toyota may be expanding it’s hybrid empire. Dailmler is working on its own hybrid technology and has approached Toyota about sharing its gas electric hybrid technology with them. The two companies have been in negotiations for over a year now, so an official announcement is expected soon. If the deal should go through we could see Toyota technology showing up in Mercedes-Benz vehicles as early as 2012.