Daimler AG is one of a shrinking number of automakers that continues to build its own transmissions, but the parent of Mercedes-Benz is now looking to change that. The automaker has been holding talks with rival BMW about possible powertrain collaborations including transmissions. Mercedes already supplies the two-mode hybrid transmissions that BMW is installing in its forthcoming ActiveHybrid X6. However, a proposal to build a joint factory to produce automatic transmissions in the U.S. for the vehicles being built by both companies here has reportedly been scuttled.
Automotive News also reports that a second proposal to shift Daimler's European transmission operations to a new joint venture with BMW and ZF has also been abandoned. The two automakers had been discussing a jointly developed eight-speed automatic transmission but could not agree on technical details.
Mercedes is still looking for ways to offload its transmission operations, saying that it is not core to its business. This will be increasingly true if more of its vehicles switch to electrified powertrains where single speed reduction gears are all that is required. The two companies are still discussing collaborations on engines, however, including a new three-cylinder unit.
Chrysler has been on the look-out lately for dancing partners for anything from vehicle platforms to alternative propulsion, and the Pentastar has extended its outsourcing to IT services. Chrysler and Tata Consultancy have teamed up on a $120 million, multi-year contract that sources Chrysler's dealer website work to India. The deal effectively continues the partnership formed between Tata and Chrysler in 2002, but the new deal means even more work goes to India.
Chrysler points out that the IT services were previously performed by contractors that weren't Chrysler employees, but the Auburn Hills automaker declined to mention which company lost the work. IT workers at Chrysler are still nervous about the possibility of more IT outsourcing, however, and it's hard to blame them. Chrysler is strapped for cash and looking to free up money for new products, and IT isn't exactly a core automotive function. It will be interesting to see if Chrysler and Tata will one day expand the partnership to include more vehicles, but this time it's just bits and bytes.
