Ford and Toyota have called off their planned joint development of a hybrid system for light trucks and SUVs, Japan’s Nikkei reported.

The two carmakers signed an initial agreement in August 2011 and had been looking into technological adaptations and the prospects for commercialisation.

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The agreement was due to be finalised last year but the carmakers are believed to have struggled to reach a consensus on design techniques and production allocations.

The Nikkei reported that as they were unable to work out their differences this year, the project was abandoned.

Each will instead focus on developing light trucks and other vehicles employing proprietary hybrid technology. Ford already sells models with an in-house-developed hybrid system and is expected to develop a light-truck system by 2020.

The Nikkei added that Toyota and Ford will continue discussing an alliance in next-generation telematics systems, an area they had also announced in August 2011.

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