Ford plans own truck hybrid system after split with Toyota

  • Bloomberg News
  • Tuesday, July 23, 2013 1:53pm
  • Business

SOUTHFIELD, Mich. – Ford Motor Co., gaining on hybrid car sales leader Toyota Motor Corp., said Tuesday it will end a partnership with Japan’s largest automaker to develop gasoline- electric systems for pickups and sport-utility vehicles.

Ford is on track to bring its rear-wheel-drive hybrid system to market later this decade, Raj Nair, the company’s product development chief, said by telephone. Toyota and Dearborn, Mich.-based Ford mutually agreed to end their collaboration after the research and development phase, he said.

“Both parties gained from each other’s expertise and insight,” Nair said in the interview. “We’ve developed a lot of expertise in-house and determined we could deliver the system on our own.” Nair declined to be more specific on the timing.

Ford Chief Executive Officer Alan Mulally and Toyota President Akio Toyoda personally negotiated their tie-up before the two automakers made the collaboration public in August 2011. Since then, Ford has boosted sales of hybrid and plug-in versions of the Fusion sedan and the C-Max wagon in the U.S. to challenge Toyota, whose Prius has dominated the hybrid market for more than a decade.

Ford and Toyota City, Japan-based Toyota will continue to work jointly on standards for in-car technology and communication systems, Nair said. The two automakers have signed an agreement in China to share emergency and customer-call centers, he said.

A feasibility study on collaborating on hybrids for larger vehicles began after the companies made the 2011 announcement, Mike Michels, a Toyota spokesman, said in an e-mailed statement.

After completing that study, “we have agreed to develop hybrid systems individually,” he said, without elaborating. Along with cooperation on telematics, the companies “will consider other areas for future collaboration as well,” Michels said.

Nair said such joint work would be “across the lineup and that’s global in nature.”

Ford boosted its electric-drive deliveries to 46,197 in this year’s first half, more than five times its year-earlier volume. Toyota led with 176,506 such sales, up 4.4 percent, as industrywide deliveries climbed at least 23 percent to more than 287,000, based on data compiled by Bloomberg.

Toyota, the world’s largest seller of gasoline-electric autos, has sold more than 2 million hybrid cars and light trucks in the U.S., accounting for 70 percent of all such sales in the region, the company said Tuesday.

President Barack Obama won an agreement from automakers in 2011 to double the Corporate Average Fuel Economy for vehicles sold in the U.S. to 54.5 miles (88 kilometers) per gallon by 2025. That’s spurring more electrified vehicle production from automakers including Ford, which plans to triple output this year compared with 2011 levels, Nair said today.

Ford and Toyota have declined to say which trucks and SUVs will use the jointly developed hybrid technology. Ford’s F- Series pickup is the top-selling vehicle in the U.S., and the automaker sells several SUV models, such as the Ford Explorer. Toyota sells the Tundra large pickup, Tacoma small pickup and SUVs such as the Highlander and Sequoia.

Ford was the largest recipient of low-interest federal loans aimed at producing more fuel-efficient vehicles. The company in 2009 was approved for $5.9 billion in Energy Department loans that it’s used to develop products including its hybrids. Ford began repaying the loans last year, according to the company’s annual 10-K filing.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Allan and Frances Peterson, a woodworker and artist respectively, stand in the door of the old horse stable they turned into Milkwood on Sunday, March 31, 2024, in Index, Washington. (Ryan Berry / The Herald)
Old horse stall in Index is mini art gallery in the boonies

Frances and Allan Peterson showcase their art. And where else you can buy a souvenir Index pillow or dish towel?

Everett
Red Robin to pay $600K for harassment at Everett location

A consent decree approved Friday settles sexual harassment and retaliation claims by four victims against the restaurant chain.

magniX employees and staff have moved into the company's new 40,000 square foot office on Seaway Boulevard on Monday, Jan. 18, 2020 in Everett, Washington. magniX consolidated all of its Australia and Redmond operations under one roof to be home to the global headquarters, engineering, manufacturing and testing of its electric propulsion systems.  (Andy Bronson / The Herald)
Harbour Air plans to buy 50 electric motors from Everett company magniX

One of the largest seaplane airlines in the world plans to retrofit its fleet with the Everett-built electric propulsion system.

Simreet Dhaliwal speaks after winning during the 2024 Snohomish County Emerging Leaders Awards Presentation on Wednesday, April 17, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Simreet Dhaliwal wins The Herald’s 2024 Emerging Leaders Award

Dhaliwal, an economic development and tourism specialist, was one of 12 finalists for the award celebrating young leaders in Snohomish County.

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.