Ford and GM collaborate to meet CAFE fuel efficiency standards for truck and passenger car transmissions

Corporate Average Fuel Economy (CAFE) rules dictate that fuel economy for vehicles must be 54.5 miles per gallon by the year 2025. In their effort to meet this requirement, U.S.-based OEMs Ford and General Motors have forged a collaboration to create new, more fuel-efficient transmission for passenger cars and trucks. Under the terms of the agreement, GM will conduct research and produce a 9-speed automatic transmission for use in front-wheel drive passenger cars; while Ford will develop a 10-speed automatic transmission that will be used in rear-wheel drive applications, including trucks like the F-150 and sports cars like the Mustang.
Transmissions are believed to be an area of automotive technology that can still be substantially improved. Some companies that produce 8- and 9- speed transmissions have seen increases in fuel economy by as much as 15%.
There is a high probability that the collaboration between GM and Ford will enable the two auto giants to meet their fuel efficiency goals, although much still need to be improved to achieve the 54.5 MPG target. (November 3, 2012)