Ford to Use Toyota’s Hybrid Technology —

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Toyota Hybrid

Ford to Use Toyota’s Hybrid

By TODD ZAUN; Danny in Detroit contributed reporting for article.

Published: March 10,

TOKYO, March 9 The Ford Company will license technology from the Toyota Corporation in a deal that help establish Toyota’s as a standard for the industry.

Toyota has trying to sell its hybrid to a variety of automakers to help its high development cost. will incorporate the Toyota into a hybrid system it to introduce late this in a gasoline-electric version of its Escape utility vehicle, the two companies yesterday in a statement.

The Ford vehicle would be the hybrid offered by an American and the first application of hybrid in a S.U.V. Powered by the combination of a engine and an electric motor, are more fuel-efficient and less than vehicles with gasoline engines.

Toyota, a rival to Ford in terms of vehicle sales volume, has a strong lead in hybrid The carmaker became the first to produce hybrids with the of the Prius sedan in 1997. for the latest version of the Prius has stronger than Toyota though sales volume small compared with models like the Camry.

The deal follows a similar between Toyota and the Nissan Company, which agreed in to license Toyota’s gas-electric system for use in vehicles that plans to sell in the United by 2006.

But Ford is leasing considerably technology than Nissan. Toyota says it makes on its hybrid vehicles, analysts say it may be a time before hybrids are a source of income given the cost of developing the vehicles and relatively low sales volumes.

sold 53,000 hybrid globally last year, or than 1 percent of its worldwide of 6.07 million vehicles.

Automakers that use any of Toyota’s are likely to have a more time making money. At a media event in January, Ghosn, the chief executive of said that the Altima would not be profitable.

For Toyota, the agreement with Ford is not to be a big revenue generator.

Toyota Hybrid

Kurt auto analyst for ING Securities in said the importance of the deal Ford was that »Toyota is the standard for the hybrid power

»Toyota is making strides to critical mass for its hybrid Mr. Sanger said.

Under the agreement announced Toyota will license to a patented hybrid control that links a gasoline with an electric motor. The refused to disclose the terms of the agreement or how much Ford pay in royalties. In addition, the companies to license to each other reduction technologies that has developed.

So far, American have been less than their Japanese about hybrid vehicles, that it is difficult to justify the cost of the technology when few consumers seem concerned fuel economy. For several Toyota and Honda have the only automakers selling hybrid cars. And so far, are the only companies with plans to offer a range of the

Toyota already sells a minivan in Japan and plans to out a hybrid version of its Lexus RX 330 the RX 400h, later this in the United States. Toyota plans to introduce a hybrid of its Highlander S.U.V. in the United next year. It has set a goal of 300,000 hybrid vehicles a by mid-decade.

Honda, which two gasoline-electric vehicles, the Insight and the Hybrid, also plans to a hybrid version of its Accord

The new hybrids from Ford, and Honda will be more than traditional gasoline-powered of the same vehicles, though the have not yet said by how much.

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