DaimlerChrysler and General Motors have agreed to co-develop a new hybrid vehicle technology in an attempt to catch up Japanese rivals on the fuel-saving systems that reduce harmful emissions.
The two companies plan to develop hybrid technology that boosts both acceleration and fuel economy by 25 percent and can be used in a variety of vehicles.
The GM/Chrysler hybrid technology will allow a vehicle to use a smaller conventional engine, making the system more cost-effective than current Honda and Toyota hybrids.
GM will use the system in late 2007 in its Chevrolet Tahoe and GMC Yukon full-sized SUVs. Chrysler will follow with a hybrid version of its Dodge Durango full-sized SUV that will be among a range of hybrids the company offers.
The GM/Chrysler hybrid system will improve fuel economy at highway speeds and maintain trailer-towing ability, both of which are important for the U.S. market.
