TOKYO, March 9 (UPI) -- The Toyota Motor Co. announced Tuesday it will allow the Ford Motor Co. to use its key hybrid engine technology in a move that may set an industry standard.
The New York Times said Toyota has been trying to sell its hybrid system to help offset high development costs.
Hybrids are considered more fuel-efficient and less polluting than gasoline engines, since they are partially powered by an electric motor.
Ford is expected to use the Toyota technology in a hybrid system it will introduce this year as part of its Escape sport utility line. The newspaper said that will be the first hybrid offered by a U.S. carmaker and the first application of hybrid technology in a sport utility vehicle.
The companies did not disclose terms of the licensing agreement or how much Ford will pay in royalties.
The companies also agreed to license to each other the emission-reduction technologies that each has developed.
