GM and and Ford are planning to work together to develop a new transmission for front-wheel-drive vehicles, according to a report carried on the Reuters wire.


Citing a GM official ahead of an offical announcement expected later on Thursday, the report said that under the collaboration the two companies would build their own versions of the transmission.


Analysts say that working together on major component systems by the arch-rivals is almost unprecedented and has been driven by the huge costs in transmission development.


Further details of the project are expected to be announced later on Thursday.