The two companies have been working together since 2011, so far completing feasibility studies and early development of a hybrid system. Ford will now bring this knowledge in-house, planning to launch its own rear-wheel drive hybrid drivetrain at the end of the decade.

Ford and Toyota will, however, continue to work together on internet-connected in-car technology, as was agreed when the partnership was drawn up just under two years ago.

Raj Nair, group vice president, global product development, said: ‘We know what it takes to build world-class hybrids, and we now will build and leverage that expertise in-house. By continuing to develop a rear-wheel-drive hybrid system on our own, we can extend our advanced hybrid technologies to new vehicle segments and deliver even better fuel economy across our lineup.’

Ford has invested heavily on electromobility over the last year, investing $355m (£231m) on new equipment and 200 additional electrification engineers to bring transmission, battery and control systems and hybrid technology development in-house.

It also invested $50m (£33m) in its R&D facilities, doubling its battery testing capabilities with a claimed 25% reduction in development times for next generation electric vehicles.