Ford, Toyota to jointly develop hybrids for pickups, SUVs

Updated 11:47 a.m. ET with information from interviews with both automakers. Ford and Toyota just announced they're going to collaborate on development of a new hybrid system for pickup trucks and SUVs.

The challenge: Try to bring fuel-saving hybrid systems to rear-wheel drive trucks, not an easy task considering customers' demands for payload, towing capacity and durability.

The deal brings together Toyota's expertise in hybrid systems and Ford's leading position in trucks. The F-Series is the nation's best-selling vehicle of any sort for decades. Ford licensed elements of Toyota's hybrid system for its first generation Ford Escape SUVs. It had done its own research but discovered that it was cutting too close to what Toyota had already patented.

With new government fuel-economy standards on the way calling for a corporate average of 54.5 miles a gallon by 2025, automakers are going to have to use hybrids and other means to try to meet it. Ford has said one out of four of its product portfolio will be hybrids by 2020. And Ford is showing that hidebound pickup buyers are willing to accept engines other than V-8s: it's selling more than half its F-150 pickups now with V-6s, most of them turbocharged.

The signing of a memorandum of understanding will lead to joint research, the two companies said. They did not have an estimate of how soon their research will lead to a full-hybrid pickup.

"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. "Both teams bring a tremendous amount of expertise."

Takeshi Uchiyamada, Toyota executive vice president for research, 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."

General Motors has offered a so-called mild hybrid system for years in its full-size Chevrolet and General Motors pickups. But it sells at a large additional cost compared with the comparable base-level pickup.

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.

Uchiyamada said the telematics portion of the deal will focus more on a joint standards and protocols that can be applied industrywide, not just technology sharing.