Tuesday, December 26, 2006

Ford seeking more hybrid help from Toyota?

There are rumors coming out of Japan that Ford is seeking some kind of assistance from Toyota, but it is not known what kind of assistance Ford is exploring. With fuel economy and global warming becoming ever more important issues in the U.S., could Ford be seeking more hybrid assistance from Toyota?

Already, Ford utilizes some Toyota hybrid technology for its hybrid vehicles, the Escape hybrid and the Mercury Mariner hybrid. Thus, could Ford be seeking help on another hybrid vehicle? Since tax credits for Toyota hybrids have been reduced, the sales of Toyota hybrids have slowed. In this market, a serious Prius challenger might be able to make some important gains, especially for a company like Ford. Moreover, if Toyota helped Ford challenge the Prius, Toyota would still make money off of the deal by licensing their hybrid technology - a move in which Toyota has claimed significant interest.

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