The partnership is aimed at bringing the next generation system to market quicker than either company could manage on their own. Both had already begun work on a rear-drive hybrid powertrain for their larger vehicles, designed to bring better fuel economy without compromising their performance.

As a result, the companies expect to be able to bring the completed system to market before the end of the decade, with each working on their own way to integrate it into their forthcoming vehicles.

A memorandum of understanding has already been signed, and a formal agreement is expected to be in place by next year.

‘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.’