BMW and Lexus announced Tuesday that they will combine their auto parts business into a $2 billion deal to bring together the two largest manufacturers of engine parts.
The combined company will provide parts to more than 1,500 customers in over 100 countries, BMW said.
The combined company’s assets include parts, manufacturing, parts distribution and parts distribution centers.
The companies aim to provide consumers with better products and services through their combined business, the companies said in a statement.
The merger will create an automotive supplier that will serve customers in more than 80 countries, the statement said.
The deal is a boon for BMW and Toyota, which together make about 80 percent of the auto parts market in the United States, with Lexus accounting for about 40 percent, according to Automotive News.
The news comes amid a resurgent global auto industry, with the U.S. auto makers now selling more than $12 trillion in vehicle parts and services.