Ford and GM in talks to co-develop powertrains

 
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Ford and GM in talks to co-develop powertrains

Ford and GM in talks to co-develop powertrains

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Ford and General Motors are reportedly in talks about co-developing new powertrain technologies as the two Detroit giants struggle to reduce costs in the wake of massive losses this year. According to sources at both companies, GM first approached Ford over a month ago and since that time there have been at least three meetings that have taken place.

Development costs for powertrain technologies and transmissions are huge, and reducing these will go a long way in improving the bottom line for both companies as they attempt to cope with the consumer shift away from trucks and SUVs, reports The Detroit News.

Ford and GM have previously worked together in the development of a six-speed transmission unit that is widely used by both companies, and industry analyst Jim Hall has pointed out that Ford can gain from GM’s knowledge of four-cylinder engines while GM can take advantage of Ford’s experience with turbocharging and direct injection technologies.

One of Ford’s most sought after tenets of any agreement will likely be access to the electric technology powering the upcoming Chevrolet Volt. This would drastically reduce the costs associated with the Volt for GM and provide an additional revenue stream to the ailing Detroit manufacturer.



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Comments (3)
  1. Smart move, they already developed transmissions together.
     
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  2. yeah, GM has the same type of vision and are in the same type of problem. So its not hard to work with them. LOL
     
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  3. bambam:

    the problem is: a ridiculously fast change in market value in north america, and those people that are left buying cars are buying small ones. something that the american companies have never managed to make much of a profit off of.

    solution: suck it up and stop losing money.
     
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