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Another interesting tidbit that came out of Ford's press conference yesterday was the company's announcement that the third generation of its hybrid transaxle is currently under development. Ford's first generation hybrid transaxle was developed in conjunction with Aisin AW and can be found in the Ford Escape Hybrid and Mercury Mariner Hybrid. The second generation transaxle is set to debut in 2008 with the introduction of hybrid versions of the Ford Fusion and Mercury Milan (2006 model shown). This third generation transaxle being developed completely in house will be capable of handling both 4- and 6-cylinder engines. The transaxle is part of Ford's plan to increase hybrid production to 250,000 units by 2010.

[Source: Ford]

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