BMW and Suzuki have agreed to buy one million miles of fuel-efficient motorcycle fuel for $3.50 per gallon.
The deal will boost BMW’s fuel efficiency by about 35 percent over the next five years, with the fuel costing about half what it would have for that same period without the deal.
Suzuki also plans to invest $500 million in a new fuel cell production facility in the U.S. and Canada.
Both companies have also agreed to purchase 500,000 new motorcycles.
The agreement will cost the BMW Group $3 billion over the life of the deal, including $1 billion in annual cash bonuses for the deal’s top three executives.
Both BMW and Yamaha have been pushing to sell more fuel-saving models, with Honda recently announcing it would sell about 1 million motorcycles in 2018 alone.
The company’s fuel economy figures are far from ideal, however, with its average highway fuel economy being only 22 mpg on the 2016 Honda CBR1000RR, which is a better-than-average performer.
It is also only slightly better than the average gas mileage of its gas-powered competitors.
The motorcycle industry is undergoing a major transformation with a growing number of new models that offer the same fuel efficiency as their gasoline-powered counterparts.
Honda’s current range-topping CBR600RR, for instance, offers fuel economy of about 27 mpg, while Toyota’s Prius Prime offers fuel efficiency of 28 mpg.
BMW is also looking to boost its fuel economy, with a new model, the 2018 BMW i3, slated to hit the market this year.