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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.
With the push toward electric vehicles appearing to gather momentum, General Motors has announced that it’s partnering up with Korean electronics giant LG Corporation to develop a new range of EVs. This expands an existing relationship between the two companies, whereby LG has been involved on battery development for the Chevy Volt and its Euro market counterpart the Opel/Vauxhall Ampera.
“Many solutions for tomorrow’s transportation needs may be available more quickly by building on our partnership strategy,” declared GM Vice Chairman Steve Girsky. ”Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”
LG’s President and Chief Operating Officer, Juno Cho, added, “this is a strategic development for LG and we fully support GM’s goal to lead the industry in the electrification of the automobile.”
The need to develop thriftier, cleaner vehicles has been largely driven by impending tough fuel economy and emissions standards, primarily in Europe and the US, the latter of which has proposed a Corporate Average Fuel Economy target of 54.5 mpg for all cars sold here by 2025.
EVs which have no tailpipe emissions, nor gasoline consumption, are expected by many to play a significant role in enabling many automakers to meet the proposed targets.