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Ford Motor Co. and Toyota Motor Corp. have canceled plans to collaborate on hybrid powertrain technology for light trucks and SUVs.

The two companies have been trying to finalize an agreement since they announced their plan to partner two years ago. Their goal was to develop basic components together but work independently to integrate them into their vehicles by mid-decade.

But Raj Nair, who heads product development at Ford, tells Bloomberg News the companies decided to abandon the project before moving into hardware development. The Nikkei says the partners deadlocked over component design and production allocations.

The companies say they will continue to collaborate on standards and technologies for next-generation telematics systems.

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