The Auto Writer

General Motors and the Ford Motor Company have successfully collaborated on projects in the past, including the popular six-speed automatic transmission now available in the Ford Fusion (6F) and in the Chevrolet Malibu (6T70) plus other vehicles across their respective brand networks. A generation ago the U.S. Justice Department would have cried “foul” on this practice, but with the globalization of the world’s economy, allowing two automakers headquartered in the same country to work together makes sense.

Besides, Japan has been allowing its automakers to collaborate on projects for many years.

Though the relationship between the two automakers has varied somewhere between being a bitter rivalry and a healthy competition over the past one hundred years, both Ford and GM are learning that cooperation could be very beneficial to both parties.

Selling Volt Technology

Nothing has been agreed upon yet, but one plan could have GM sharing with Ford its Volt technology, if the car becomes commercially feasible. GM is taking a huge gamble developing the Chevrolet Volt, but it isn’t known yet whether the technology is sustainable for mass production. In exchange for having access to the technology, Ford would inject some much needed cash into the project. At least that is the theory behind the possible hook up.

New Engines, Transmissions Are Costly

Engine and transmission cooperation makes sense as it can cost one billion dollars to develop a new engine and eight hundred million dollars for a new transmission. Jointly sharing development cuts that price in half for each company, something the two cash strapped automakers would do well to consider.

Ford is perceived to be ahead of GM in the development of turbocharge technology, particularly with its new line of EcoBoost engines which can help a smaller engine perform like a larger one. For example, the Lincoln MKS will soon have an available turbo V6 option for the car, an engine that will be as strong as a V8.

Conversely, GM is ahead of Ford in the development of four cylinder engines which could be helpful to Ford as that company implements its “One Ford” program where the automaker will be building six European models for the domestic market beginning next year.

No GM-Ford Marriage; Chrysler Left Out In The Cold

Don’t expect that these sort of collaborations will eventually lead to a GM-Ford marriage nor should it be expected that Chrysler will be invited to participate. With the former, the two companies are too big to merge, likely setting off protests across the US and the European Union. With the latter, Chrysler doesn’t have the breadth and depth to join in, staking its survival on forming various relationships with other automakers including Nissan and Volkswagen.

Desperate times call for out of the box thinking, something that both Ford and GM must do in order to survive.