Collaborating with competitors may sound like a contradiction in terms.

So why did Ford President and CEO Alan Mulally and Mark Fields, Ford’s head of operations for the Americas, meet with Toyota Chairman Fujio Cho and other top Toyota executives in Tokyo the week before Christmas? Ostensibly, the meeting was to explore environmentally-friendly technology including hybrid-electric and hydrogen fuel systems and ways that Toyota can help Ford boost manufacturing efficiency.

Ford and Toyota have a history of both competition and collaboration. In the 1930’s, Ford allowed Toyota leaders to study its production techniques. In 1950, Toyota leaders including President Eiji Toyoda (yes, the family name is spelled with a “d”) spent a few months visiting U.S. auto plants and studying production. They were particularly interested in Ford’s Rouge complex in Dearborn, Michigan. Subsequently, Toyota Plant Manager Taiichi Ohno developed the Toyota production system which not only includes “lean manufacturing,” but also emphasizes input from team members at all levels and functions.

Mulally, who until September ran Boeing’s commercial airplanes business, helped implement collaborative product development and manufacturing techniques at Boeing. And besides internal collaboration, Boeing collaborates extensively with competitors. Alan Mulally is undoubtedly interested in applying his collaborative instincts at Ford.

I wrote about Toyota, Boeing and Ford’s Premier Automotive Group in The Culture of Collaboration book. There are some similarities in how these companies collaborate, but also there are distinct differences. Smart organizations consider collaborating with competitors. The acid test of whether competitive collaboration makes sense is whether it creates value for all the collaborators.