The automaker has been in talks with Fiat Chrysler for several years to finance the creation of its next-generation vehicle, but that deal fell apart last year.
The two companies are in discussions with Ford, which is developing a new electric vehicle called the Fusion.
Sources close to the matter say Ford and Fiat Chrysler have been in discussions to bring the two automakers together for the launch of the Fusion, which will be powered by a hybrid engine.
“The talks between Ford and FCA have been ongoing for a while and we are happy to have Ford on board,” Fiat Chrysler CEO Sergio Marchionne said in a statement.
The Fusion will use a hybrid fuel cell to power the car, which the automaker hopes will lower the cost of the car by 20 percent, according to the New York Times.
Ford will likely announce the car’s name at a special event later this month in Detroit, the Times reported.
Ford’s Fusion will be the first vehicle Ford has built in the United States, and the automakers will offer it at a price that will match its closest competitors, according the Times.
The new car is expected to go on sale in 2020, and is expected by some to rival the Model X, which launched in 2021.
Ford will not reveal the price of the new vehicle until the automaks reveal it at the Detroit auto show.