As General motors and Ford are trying to stop record losses, they may both turn to an unlikely ally, each other. Although neither company will publicly admit it, credible rumors say that the expense of future engines and transmissions may be shared between the two rivals. Considering that a new engine may cost $1 billion and a new transmission may cost $800 million, only having to spend half as much would be a great benefit to either ailing carmaker. The deal may also extend to technology that is already in development such as the system to be used in GM’s volt or Ford’s EcoBoost system.

All three of the “Big Three” American car companies have built brand loyalty through cross-Detroit rivalry. Many readers have fathers (or who are themselves) who identified themselves as a “GM-man” or a “Ford-man”. But quietly the companies have shared technology. Most recently, GM and Ford split the expense of developing a new six-speed transmission.

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Source: Detroit News

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