Is the Prius V not big enough for you? Then you'll probably be interested to learn that Ford and Toyota announced a new partnership today to develop a new hybrid system for SUVs and light trucks. The "equal partners" deal should result in a gasoline-electric hybrid powertrain that will be ready "later this decade" – in other words, in time for the higher CAFE standards that the U.S. just announced.

The exact models that will use the new powertrain are, unsurprisingly, not being revealed. Instead, all we know is that Toyota and Ford will develop a RWD hybrid system that will improve the efficiency of trucks and SUVs while still allowing them to be driven in the way customers are used to drive these big vehicles. The powertrain's architecture will most likely not be the same as what is used in the dominant Hybrid Synergy Drive that Toyota has refined over the past 14 years in the Prius. The reason no one knows for sure is that all that Ford and Toyota have as this moment is a Memorandum of Understanding. The next step will be a feasibility study to figure out what the exact implementation path will be, with the general outline being that the companies will work together on a powerplant that will be used independently in models that are specific to each company (i.e., this is not about sharing a platform or models, just a RWD hybrid powerplant). The two automakers will also work together on in-vehicle telematics.

Today's announcement could further confuse some people's understanding of the history of hybrid technology, since it has long been an urban legend that Ford licensed its earlier hybrid tech from Toyota. This did not happen, as we explained back in 2009.
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Ford, Toyota to Collaborate on Developing New Hybrid System for Light Trucks, SUVs; Future Telematics Standards

Ford and Toyota are collaborating as equal partners to accelerate consumer availability of a new advanced hybrid system for light trucks and SUVs
New co-developed hybrid system ready for use later this decade on Ford and Toyota rear-wheel-drive light trucks and SUVs, delivering greater fuel efficiency while still providing customers the capability they want and need
Ford and Toyota also will collaborate on development of next-generation standards for in-car telematics and Internet-based services

Dearborn, Mich., Aug. 22, 2011 – Ford Motor Company and Toyota Motor Corporation – the world's two leading manufacturers of hybrid vehicles – today announced they will equally collaborate on the development of an advanced new hybrid system for light truck and SUV customers.

Ford and Toyota have signed a memorandum of understanding (MOU) on the product development collaboration, with the formal agreement expected by next year.

Both companies have been working independently on their own future-generation rear-wheel drive hybrid systems. The two now have committed to collaborate as equal partners on a new hybrid system for light trucks and SUVs. This new hybrid powertrain will bring the full hybrid experience of greater fuel efficiency to a new group of truck and SUV customers without compromising the capability they require in their vehicles. Ford and Toyota believe that their collaboration will allow them to bring these hybrid technologies to customers sooner and more affordably than either company could have accomplished alone.

"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. "Ford achieved a breakthrough with the Ford Fusion Hybrid, and we intend to do this again for a new group of truck and SUV buyers – customers we know very well."

Takeshi Uchiyamada, Toyota executive vice president, Research & Development, said: "In 1997, we launched the first-generation Prius, the world's first mass-produced gasoline-electric hybrid. Since then, we have sold about 3.3 million hybrid vehicles. 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."

The two companies also agreed to work together on enablers to complement each company's existing telematics platform standards, helping bring more Internet-based services and useful information to consumers globally.

Under the MOU agreement, the two companies will bring the best of their independently developed hybrid powertrain technology and knowledge to a new co-developed hybrid system, which will be used in rear-wheel-drive light trucks arriving later this decade. Specifically, Ford and Toyota will:

Jointly develop as equal partners a new rear-wheel drive hybrid system and component technology for light trucks and SUVs
Independently integrate the new hybrid system in their future vehicles separately

For years, both Ford and Toyota have been working independently on similar new rear-wheel-drive hybrid systems aimed at delivering higher fuel economy in light trucks and SUVs. When the two companies began discussing this potential collaboration, they discovered how quickly they were able to find common ground.

"By working together, we will be able to serve our customers with the very best affordable, advanced powertrains, delivering even better fuel economy," said Ford President and CEO Alan Mulally. "This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability."

Toyota President Akio Toyoda added: "Toyota is extremely proud to join Ford in developing a hybrid system for pickup trucks and SUVs. Not only is this tie-up clearly one aimed at making automobiles ever better, it should also become an important building block for future mobility in the U.S. By building a global, long-term relationship with Ford, our desire is to be able to continue to provide people in America automobiles that exceed their expectations."

This rear-wheel-drive hybrid system will be based on an all-new architecture to deliver the capability truck and SUV customers demand while providing greater fuel economy.

While the rear-wheel-drive hybrid system will share significant common technology and components, Ford and Toyota will individually integrate the system into their own vehicles. Each company also will determine the calibration and performance dynamics characteristics of their respective light pickups and SUVs.

In addition, as telematics plays an increasingly more important role in the in-car experience, both companies have agreed to collaborate on standards and technologies needed to enable a safer, more secure and more convenient in-car experience for next-generation telematics systems. The telematics collaboration relates only to standards and technologies, and each company will continue to separately develop their own in-vehicle products and features.

"Ford has made tremendous progress in the area of telematics," Kuzak said. "We have unique and very good solutions today with SYNC and MyFordTouch. Working together on in-vehicle standards can only enhance our customers' experience with their vehicles."

Uchiyamada added: "Toyota has also invested heavily in telematics in various countries around the world, with services like the G-BOOK and G-Link. In the U.S., we have just introduced the accessible, easy-to-use Entune. By sharing our know-how and experience, we would like to offer even better telematics services in the future."

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About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 166,000 employees and about 70 plants worldwide, the company's automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit

About Toyota Corporation
Toyota Motor Corporation-which gave the world the first-ever mass-produced gasoline-electric hybrid vehicle in 1997-produces a full range of vehicles, from luxury cars to trucks and minivehicles, together with subsidiaries Daihatsu Motor Co., Ltd. and Hino Motors, Ltd. It has 60 manufacturing companies around the globe and employs approximately 320,000 people. For more information, please visit

Takeshi Uchiyamada, Executive Vice President, Toyota Motor Corporation
Dearborn, Mich.
Aug. 22, 2011

Thank you, Mr. Kuzak. We have just signed a memorandum of understanding for collaboration with Ford. Both companies will now begin making preparations for joint work on new technologies. We are counting on those technologies to benefit customers in the United States and around the world.

It has been more than hundred years since the first car was born, and our industry is now facing several challenges. Offering safe cars is a given for any automaker, but one can say the greatest challenges are "conserving energy" and "reducing greenhouse gas."

Toyota achieved a breakthrough in these challenges in nineteen ninety-seven (1997). That is when we launched the first-generation Prius as the world's first mass-production gasoline-electric hybrid.

Since then, we have begun producing hybrid vehicles in the United States, China, Europe, Australia, and Thailand, as well as in Japan. We have sold about three-point-three (3.3) million hybrid vehicles in about eighty (80) nations.

Our collaboration with Ford is a move to make hybrid technology more widely available in sport-utility vehicles and in trucks. Those kinds of models are indispensable to American customers. And providing them with our hybrid technology will help conserve energy and reduce output of greenhouse gas here in the United States. That was our thinking in considering the collaboration.

Ford was also a pioneer in developing hybrid technology. And it is a traditional leader in sport-utility vehicles and in trucks. So we are extremely honored to be undertaking preparations for joint work with Ford.

We need to think carefully about how to ensure that cars remain valuable to society in their second century. Great advances in information technology and in communications are transforming the world.
And automobiles need to be part of those advances.

Information technology and communications will play a big role in future transport. Vehicles will no longer be self-contained units. They will be part of a larger interaction with other vehicles and with the transport infrastructure.

Cars will fulfill a new role in people's lives. We at Toyota believe that cars can and will become partners in more-fulfilling lifestyles.

The foundation for the changes that I am describing will be telematics technologies. We at Toyota have commercialized several technologies in anticipation of the coming revolution in telematics. For example, we launched our Gazoo automotive portal site in nineteen ninety-eight (1998). And we began offering our G-Book telematics service in two thousand two (2002). In the U.S., we have just introduced the accessible, easy-to-use Entune. By sharing our know-how and experience, we would like to offer even better telematics services going forward.

In the future, plug-in hybrid vehicles and electric vehicles will be connected with home energy systems, and with energy infrastructure. That will help raise overall energy efficiency, and motoring lifestyles will become more rewarding.

Ford has also been building telematics systems and for the same reasons. By sharing our know-how and experience, we can transform what is considered as a "dream" into "practical reality."

In closing, let me sum up my thoughts on this collaboration.

We expect to create exciting and socially beneficial technologies with Ford, and we can do so because our 2 companies have enough experience to create a synergy effect in hybrid technology and in telematics.

At the same time, we will compete harder than ever in the spirit of "making great cars." Our competitive stance will help maximize benefits for customers and for society at large.

We are counting on this collaboration between Toyota and Ford to benefit American society and to open a new page in the history of the world automobile industry. As an engineer, I will be deeply gratified to see us fulfill those aims.

We have a lot of details to work out with Ford before we can tell you more about our collaboration.
In the meantime, we are grateful for your interest and understanding.

Thank you.

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