Toyota and Ford have signed a memorandum of understanding to develop a new hybrid system for SUVs and commercial vehicles.
The manufacturers will develop a rear-wheel drive engine which is likely to go on sale towards 2020. The partnership will also develop common standards for internet services in cars.
Derrick Kuzak, Ford's global head of product development, said: “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.”
A formal agreement is expected to be agreed next year.