GM To Work With BMW On Improving Fuel Efficiency

GM To Work With BMW On Improving Fuel Efficiency

It’s no secret that the upcoming Corporate Average Fuel Economy targets, whereby all automakers who sell vehicles in the US, must achieve 35.5 miles per gallon as a fleet average between now and 2016 and  54.5 mpg for cars and light trucks by 2025, represent a formidable hurdle.

In order to better achieve these targets and reduce the risk of fines, some manufacturers are finding the best way is to join forces and develop technology together.

One of the latest such endeavors could likely see General Motors and BMW teaming up. The idea is for the General to leverage its expertise in fuel cell and electric vehicle technology, while BMW would provide its own in conventional gas and diesel powertrains.

By joining together, both companies will be able to develop competitive advantages in the marketplace, thanks to reduced R&D and operating costs.

According to Forbes, such a partnership could prove advantageous for GM, enabling it to deliver good quality, fuel efficient vehicles in a variety of international markets, while keeping a cap on overall costs. Forbes believes that offering such vehicles will allow for significant market share gains over the medium and longer term, boosting the price of GM’s stock in the process.

[Source: Forbes]