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No. 2 U.S. automaker Ford will head the effort to develop the 10-speed transmission for rear-wheel drive vehicles such as pick-ups, SUVs and performance cars, Automotive News reported.
GM and Ford could not be immediately reached for comment.
The auto industry is scrambling to find ways to boost fuel economy by 2025, when U.S. government standards mandate that automakers show a corporate average fuel economy (CAFE) of 4.3l/100km.
That translates to about 6l/100km in real world driving, or more than 70 percent higher than the average fuel economy of 10.3l/100km for the 2011 model year vehicles.