 Toyota and Ford entered into a licensing agreement in March 2004 allowing Ford to use 20 patents from Toyota related to hybrid technology, although Ford's engine was independently designed and built.In exchange for the hybrid licenses, Ford licensed patents involving their European diesel engines to Toyota.Toyota announced calendar year 2005 hybrid electric versions of the Toyota Highlander Hybrid and Lexus RX 400h with 4WD-i, which uses a rear electric motor to power the rear wheels, negating the need for a transfer case.