





Fresh from the news that Ford would be investing cash into its Canadian facilities, our friends north of the border got even more good news, this time from GM. The General is investing $290 million in all, including $245 million at its St. Catharines plant, which will make six-speed transmissions. The move will ensure the employment of the 300 workers at the facility. GM also plans to invest $40 million for environmental research at its Canadian engineering center in Oshawa. GM also announced that it would be building a hybrid vehicle at its Oshawa car plant at an undisclosed future date. The Canadian government is showing its gratitude by not requiring early payment for $200 million in loans that is owed by the General. The loan was triggered early when GM announced the closure of its Oshawa truck plant, meaning the General wouldn't meet minimal employment targets.

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?


As we reported last month, it appears BMW and Audi, following the lead of Lexus, will begin to offer eight-speed automatic transmissions in their flagship models. Sources are now saying the transmission will be supplied by ZF Friedrichshafen, a familiar German supplier to both marques. Although we don't know all of the specifics, Audi is expected to debut the new slushbox in the range-topping A8 sedan, Q7 SUV, and their future A7 premium model. BMW will likely debut the new gearbox in their premium 7-Series sedan and the X6 Sport Activity Vehicle, according to company sources.
The current Audi A8 and BMW 7-Series both use six-speed automatics. The Mercedes-Benz S-Class utilizes a seven-speed automatic of their own design, while Lexus debuted their eight-speed transmission (used in their LS models) four years ago. Increasing the number of forward gears offers advantages in smoothness, acceleration, and improves fuel efficiency. Lower fuel consumption equates to reduced emissions, helping the powerful models meet increasingly stringent air quality standards in Europe and the United States.
