WSJ: DaimlerChrysler Ponders 'World Engine'

Seeking to wring big cost savings out of its expanding global ties, DaimlerChrysler AG is working with its Asian affiliates, Mitsubishi Motors Corp. and Hyundai Motor Co., to develop a "world engine" for as many as one million vehicles that could hit the road within a couple of years. The proposed engine, which would bring together automakers from North America, Europe and Asia, underlines the increasing globalization of the auto industry. The program is significant because of its scale -- only a few engines in the world have been built in such high volume -- and because independent auto companies rarely agree to share a technology as crucial as an engine. DaimlerChrysler's U.S. Chrysler unit, Japan's Mitsubishi and South Korea's Hyundai hope that by jointly developing the engine, they can reduce development costs by about a third, making it more likely they will be able to eke out a profit from the small cars most of the engines will power. DaimlerChrysler, Mitsubishi and Hyundai haven't formally decided to build the engine. But Rolf Eckrodt, the DaimlerChrysler veteran recently installed as Mitsubishi's chief operating officer, expects the companies will decide within the next few months to go ahead with the program. Production could start about two years after that, he said. <http://interactive.wsj.com/articles/SB1010443797253507920.htm>