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.