Milton Ruben Toyota

Aug 29, 2011

In a move to share the cost of developing new technology, Ford and Toyota are joining forces to develop a gas-electric hybrid system for light trucks and sport-utility vehicles. The move is in response to the latest U.S. fuel-economy targets set by the Obama administration.

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. The companies would work together to co-develop a hybrid powertrain system for larger, rear-wheel-drive vehicles such as big pickup trucks and SUVs.

The Obama administration’s new fuel-economy requirements call for auto makers to produce a fleet of vehicles that averages 54.5 miles a gallon by 2025, from the current level of 27.6 miles a gallon. Under the administration’s plan, auto makers that offer hybrid pickup trucks can earn credits that make it easier for them to reach the higher target.

Toyota research and development chief Takeshi Uchiyamada stated,”The [Environmental Protection Agency] requirements are a big challenge for us auto makers. American society can’t do without trucks and SUVs. This collaboration we are forming with Ford is not only about lowering carbon dioxide but making trucks and SUVs more affordable for the customer.”

Cost and depth of the co-development, such as how many engineers from each company will be assigned to work on development, has yet to be determined. This is the first time the pair agreed to collaborate on product development.

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