Ford, GM explore joint engines

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Ailing automakers look to save costs of developing powertrains
Bryce G. Hoffman / The Detroit News

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.

The rival automakers are keen to find ways to reduce research-and-development costs even as they struggle to respond to a dramatic shift in consumer demand from big trucks and sport utility vehicles toward smaller, more economical cars and crossovers.

A deal could give Ford access to GM's Volt technology -- if it becomes commercially viable. It could also help GM offset cuts to its product development budget.

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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.

GM's overture drew a mixed reaction inside Ford. Some executives felt that previous joint projects had benefited GM more than they had Ford, but others -- including Ford's global product development chief, Derrick Kuzak -- saw it as an opportunity to leverage some of GM's technology while at the same time reducing Ford's own development costs.

The matter went to Ford's board of directors last month, which voted to authorize negotiations with GM.

Since then, there have been at least three meetings between the two companies involving Barb Samardzich, Ford's head of powertrain operations, and her counterpart at GM. No agreements have been reached, but the talks were characterized as promising.

Neither company would confirm or deny the reports. GM spokesman Tom Wilkinson said his company does "not comment on speculation about future products or product development."

Ford spokesman Said Deep said Ford is concentrating on bringing its fuel-efficient European platforms to North America, but did not rule out working with another manufacturer.

"Our focus and greatest opportunity is to create 'One Ford,' and we're doing that leveraging our own global assets," he said. "(But) we're always open to talking to others in the industry. Beyond that, we're not going to comment."

http://www.detnews.com/apps/pbcs.dll...TO01/808040378

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