DaimlerChrysler and General Motors Corporation are to join forces to develop a two-mode full hybrid propulsion system for use in GM, Chrysler Group and Mercedes Car Group vehicles.
The two have already signed a non-binding memorandum of understanding and intend to enter into a definitive agreement early this year.
“Together we will jointly develop what is essentially an electrically variable transmission with two hybrid drive modes,” said Tom Stephens, group vice president of GM Powertrain.
Variants planned include rear- and front-wheel-drive versions for cars, trucks and other vehicles.
“The system will reduce fuel consumption at highway speeds much more effectively than available single mode systems and achieve at least a 25 percent improvement in composite fuel economy in full-size truck applications,” Stephens added.
Previously, both companies were working independently on their own hybrid propulsion systems for their range of passenger vehicles.
Now, each company will integrate the jointly developed two-mode full hybrid into its own vehicles.