[Mr. Wyndham]

DETROIT (Reuters) - General Motors Corp and Ford Motor Co are discussing a possible collaboration to develop new engines and powertrain technologies as the automakers look to cut research and development costs, the Detroit News reported on Monday.

A deal would give Ford access to GM's plug-in hybrid Volt technology and help GM offset the decision to cut its product development budget, the paper quoted sources at the two companies as saying.

Saddled with losses amid a sharp drop in sales of once-profitable pickups and SUVs, the struggling automakers are aiming to slash costs across their entire business operations including product development.

The report said GM approached Ford about a potential tie-up on po wertrain development more than a month ago, and Ford's board approved negotiations with GM on the matter last month.

Representatives at the two companies were not immediately available for comment.

Developing an entirely new engine can cost $1 billion while a new transmission could cost about $800 million, the report said.

GM and Ford had also previously collaborated on the development of a fuel-saving six-speed transmission.
http://www.reuters.com/article/reute...47240420080804

VERY good news, imo. The two companies can cut costs, AND deliever unbelieveably superior products to help them both combat the imports.
I look forward to seeing what they come up with; both companies do different things very well!!