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GM Planning Fuel-Efficient Engines

General Motors and its Chinese partner will jointly develop fuel-efficient engines and transmissions.
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General Motors

and Chinese partner SAIC Motor Corp. say they will jointly develop a fuel-efficient small-displacement gasoline engine as well as an advanced transmission.

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The two automakers signed an agreement Wednesday in Shanghai. "The co-development of these new engines and transmissions builds on a strong history of innovation and collaboration between GM and SAIC Motor," said Tom Stephens, GM vice chairman of global product operations, in a prepared statement.

The new small gasoline engine will be offered in displacements from 1.0 liters to 1.5 liters and will combine direct fuel injection and turbo charging, providing fuel efficiency with performance. It will be used by GM and SAIC Motor in China as well as worldwide. Engineering and development will be carried out jointly by engineers in Detroit and Shanghai.

The new front-wheel drive transmission will provide more than a 10% improvement in fuel economy over today's six-speed automatic transmission. In combination, the two technologies will provide up to 20% improvement in CO2 emissions, compared with engines and automatic transmissions in production in China today, the companies said.

In other GM news, the company is still expected to file for its IPO this week, but GM hasn't confirmed an official date.

-- Written by Ted Reed in Charlotte, N.C.