General Motors and DaimlerChrysler is to jointly develop a petrol-electric powered car.

GM and Chrysler previously co-operated in developing transmission systems. GM plans to use the new hybrid technology in its Chevrolet Tahoe and GMC Yukon 4x4s by late 2007.

DaimlerChrysler's US arm, Chrysler, will introduce hybrid technology in its Dodge Durango sports utility vehicles (SUVs).