Ford and GM discuss collaborative research

DETROIT, Aug. 4 (UPI) -- Ford Motor Co. and General Motors Corp., are in discussion to join forces on research and development, sources at both companies said.

GM proposed possible collaborations in late June, The Detroit News reported Monday.

Some at Ford were skeptical but Ford's head of global product development Derrick Kuzak viewed it as an opportunity to gain access to some of GM's technology, including GM's electrically powered Volt, the News reported.

Neither Ford nor GM would confirm any discussions but it wouldn't be the first time the two have joined forces, the News said.

The two worked together on development of a six-speed transmission that has become the cornerstone to each companies' power train systems, the News said.

The savings wouldn't be incidental. Research and development for a new engine can run as high as $1 billion; developing a new transmission can cost $800 million, the News reported.

While U.S. buyers of SUVs and pickup trucks are in mutiny, looking for smaller, fuel-efficient cars, splitting research costs with another company could result in substantial savings, the News reported.