GM and Ford are reportedly discussing a possible collaboration to develop new engines and powertrain technologies as they look to cut R&D budgets, according to a Detroit newspaper.

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The Detroit news said that a deal would give Ford access to GM’s plug-in hybrid Volt technology and help GM trim its product development budget.


The report said GM approached Ford about a potential tie-up on powertrain development more than a month ago, and Ford’s board approved negotiations with GM on the matter last month.


Developing an entirely new engine can cost $1bn while a new transmission could cost about $800m, the report said.

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