Ford and Toyota have announced a partnership to develop a new hybrid system for pick-up trucks and SUVs.
The move is driven by the need to meet tough new emissions laws in the USA. New government fuel-economy standards announced recently demand a corporate average of 54.5mpg (US) by 2025.
"This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers," said Derrick Kuzak, Ford group vice president, Global Product Development.
Takeshi Uchiyamada, Toyota executive vice president, research and development, said: "We expect to create exciting technologies that benefit society with Ford – and we can do so through the experience the two companies have in hybrid technology."
Ford's pick-up truck business has altered dramatically in recent years, with more than half its sales of F150 pick-ups being powered by a turbo V6 rather than the traditional V8.
Ford and Toyota will also collaborate on in-car telematics and internet-based devices as part of the deal.