Although a General Motors-Ford merger never gained much traction in the boardroom, the two largest U.S. automakers are reportedly contemplating a tie-up to develop new engines as well as other powertrain technologies, a new report finds.
The partnership would allow both companies to share research and development costs, ultimately lighten the load on the automakers’ financial sheets. With GM and Ford reporting second quarter losses well into the billions, the partnership could prove crucial to their North American turnaround plans.
According to The Detroit News, GM first approached Ford with the idea about a month ago. Since then, there have been at least three meetings between the two auto giants.
While no deal has been reached, it is believed that GM and Ford will agree to some sort of collaboration. Although GM and Ford are longtime rivals, such a tie-up would not be unheard of. Two years ago the automakers agreed to jointly develop a new six-speed automatic transmission which has now become a staple in both automakers’ lineups.
If the tie-up does happen, it will likely focus on direct-injection turbocharged four-cylinder engines. However, according to The Detroit News, Ford is very interested in GM’s Chevrolet Volt technology, so a Ford-badged Volt is not completely out of the question. Although the move would instantly give Ford a serious contender in the green segment, it would also help GM distribute costs and possibly bring the Volt’s sticker price down to the originally intended $30,000 range.
