Ford, Toyota Team Up On Hybrids

An unusual pairing of major auto makers is seeking to develop a gas-electric hybrid system for light trucks and sport-utility vehicles, a move to share the cost of new technology as both work to achieve the latest U.S. fuel-economy targets set by the Obama administration.

Ford Motor Co. and Toyota Motor Corp. signed a memorandum of understanding on the collaboration, with a formal agreement expected to be signed next year. If an agreement is reached, Ford and Toyota would co-develop a hybrid powertrain system for larger, rear-wheel-drive vehicles such as big pickup trucks and SUVs.Both companies already have hybrid systems that power front-wheel-drive passenger cars such as the Ford Fusion and the Toyota Prius, the top-selling hybrid in the U.S. With new fuel economy rules coming, Ford and Toyota have decided to work together to build a new generation of hybrid pickup trucks and SUV’s. This new programme is specific to rear wheel drive programmes, that will be used in larger trucks. As fuel economy standards become tougher, more of those trucks will need to have hybrid systems.

At a meeting in April, Toyota and Ford product-development chiefs began discussing areas where the companies could work together, and the idea of cooperating on rear-wheel-drive hybrids was born.

Under Mr. Akioda Toyoda, the Japanese auto maker has made a number of moves to collaborate with other car companies. Last July, Mr. Toyoda said he would push to make more agreements with auto makers to share development of new technologies.