Ford CEO Interested in Bolstering Hybrid-tech Alliance with Toyota

NEW YORK February 27, 2007; Kyodo reported that the head of Ford Motor Co. has expressed strong interest in boosting the U.S. carmaker's alliance with Toyota Motor Corp. in the field of environmentally friendly hybrid vehicles.

In a phone interview Friday, President and Chief Executive Officer Alan Mulally said an alliance with Toyota in developing such technology as fuel cells would be beneficial to both Ford Motor and Toyota.

"I anticipate that the automobile manufacturers will increase their collaboration and their partnership on developing the enabling technology for even more fuel-efficient vehicles going forward," he said. "It is a kind of natural thing for all of us to do, to accelerate the development of the enabling technologies."

The two automakers signed a licensing agreement in 2004 allowing Ford to use Toyota's hybrid system technology patents.

Developing such technologies requires huge expenditures, but it is widely viewed as essential for the future development of motor vehicle manufacturers.

The current tieup between Toyota and General Motors Corp. excludes fuel-cell technology.

Toyota Chairman Fujio Cho held talks with Mulally in December in Tokyo, a move that was seen by some industry analysts as signaling a global reconfiguration of the auto industry.

During the interview, Mulally said he has no specific plans to meet Cho at present. He added, however, "I look forward to regular exchanges with the Toyota leadership team."

On its relations with Mazda Motor Corp., Mulally emphasized Ford has no plans to sell its shareholding in its Japanese partner to secure funds for pressing ahead with its wide-ranging restructuring plan.

Ford booked a record $ 12.75 billion net loss in 2006, falling into the red for the first time in five years.

"We treasure our relationship with Mazda," Mulally said. "It is mutually beneficial and we have all of the financing that we need to create our new and improved Ford Motor Co."

Last month, Mazda said Ford will become its biggest shareholder in February by acquiring all Mazda shares held by its wholly owned subsidiary, Ford Automotive International Holdings S.L.

Asked if there is any possibility of forming an alliance with the unprofitable Chrysler Group of DaimlerChrysler AG, he said, "I don't think so."