Batman and the Joker are slow dancing.
Obama and McCain are holding hands.
Bill Gates is using his Mac to order a new iPhone.
Amy Winehouse and Rehab are now best friends, and that scraping sound you hear is Henry Ford revolving in his grave.
The Detroit News reports, "General Motors Corp. and Ford Motor Co. are discussing a possible collaboration to develop new engines and other powertrain technologies, according to sources at both companies."
Gas prices and the tightening credit market are pushing the automotive industry to evolve in new directions -- even collaboration between companies that have been rivals for 100 years. This may not be the hypothetical GM/Ford merger that supposedly came up in the executive suite at GM earlier this year, but you'd be hard pressed to find someone who could have predicted it just a few years ago.
The News continues, "GM first approached Ford more than a month ago, two sources familiar with the situation said. GM told Ford that it was willing to discuss a wide range of possible collaborations." The move "drew a mixed reaction inside Ford," but "the matter went to Ford's board of directors last month, which voted to authorize negotiations with GM."
Economies of scale are important in the current market. Autoblog notes, "Engine and powertrain development costs are significant -- an entirely new engine could cost $1 billion, while a transmission could cost upwards of $800 million -- so splitting those costs offers substantial savings to both companies."
Automobile Magazine notes, "The pair co-developed a transverse six-speed automatic transmission in 2002." But current negotiations may go will beyond such a small project. "The partnership could extend so far as sharing engines or hybrid propulsion systems - perhaps even the Chevrolet Volt's E-Flex architecture."
Australia's Tech.Blorge comments, "A move like that could drive economies of scale for GM, bringing the Chevy Volt back into the threshold of affordability for mainstream America." It would also give Ford, lagging behind in hybrid development, a significant boost toward putting a plug-in hybrid on the road. But what can Ford offer GM? Tech.Blorge notes, "Ford has experience in some areas GM can benefit from, including turbo-charging, direct injection and keeping production costs low."
To see the highly-anticipated Ford Flex for yourself, see our slideshow. To read more about what the auto press is saying, see the U.S. News preview of the 2009 Ford Flex.
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