Autoblog

In a move that will help both ailing automakers, General Motors and Ford are holding discussions about sharing engine and powertrain technologies. Although neither company will officially acknowledge the liaisons, the meetings have been going on for more than a month, according to sources. Engine and powertrain development costs are significant -- an entirely new engine could cost $1 billion, while a transmission could cost upwards of $800 million -- so splitting those costs offers substantial savings to both companies. In addition to the financial incentives, technology sharing would open doors that otherwise would have remained shut (e.g., GM sharing Volt technology with Ford). This wouldn't be the first time the two competitors have climbed in the sack together... years ago, they successfully partnered on a six-speed automatic transmission that is widely used by both companies today.

This rumor definitely makes for a fun what-if game. If these discussions bear fruit, what engines would you like shared across the aisle? A Vortech V8-powered F-150 or an LS9 Mustang GT500? How about a Malibu powered by a twin-turbo DI Ecoboost V6?

[Source: Detroit News]

Click above to view more images of the Tata Nano

Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.

If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.

The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss. Thanks for the tip, Yash!

[Source: Economic Times via The Earth Times]

Ford Motor Company CEO Alan Mulally wants Ford to succeed, and he'll do anything in his power to make sure it will happen. When he's not busy selling cars at the local Ford dealership, Mulally has been occupied talking to other automakers regarding possible component and plant sharing. In an interview with Automotive News, Mulally singled out powertrain engineering and manufacturing as areas where collaboration makes sense (particularly if its going to save the company money) .

Ford already has a better track record with regard to inter-automaker component sharing than many other OEMs, as evidenced by extensive partnerships with Mazda and Volvo. It does help that Ford has controlling interests in both companies, but now Mulally and co. are looking beyond their own backyard. We like the fact that Mulally seems to be open to anything that can help Ford prosper, and his style and panache have already left a mark on the automaker.

[Source: Automotive News (subscription req'd)]

Forbes automotive columnist Jerry Flint provides a history lesson of various automotive couplings and even triads to illustrate that while a few have been beneficial to one or (rarely) all parties, most fall flat on their faces. None, however, are easy for any of the parties, successful or not.

Successful mergers, buyouts, partnerships, and other combos include General Motors' Daewoo purchase and its acquisition of the HUMMER name. Chryslers' purchase of American Motors (AMC) that not only gave Jeep to the automaker but a top notch engineering team. Interestingly, Renault sold its controlling shares of AMC because its French unions couldn't stand the thought of francs bolstering American products. Sound familiar, anyone?

But successful combinations are scarce. Flint discusses DaimlerChrysler's alliance with Hyundai Motors and, earlier, Mitsubishi, both of which fell apart. Ford nearly lost the Brazilian market with its ill-fated Volkswagen alliance in the "AutoLatina" venture. And Flint provides a litany on GM's failed alliances, from Fiat to Suzuki to Isuzu, and the cost of each to the company.

Flint isn't necessarily against mergers or alliances, he just points out that none of them, no matter how successful they are eventually, are ever easy.

[Source: Forbes]