DETROIT (AP) – In a first-of-its kind partnership, General Motors and Ford Motor are investing $720 million in plants to build a new six-speed automatic transmission.

The front-wheel-drive transmission is expected to offer an estimated 4 percent improved fuel economy over traditional four-speed transmissions in front-wheel-drive cars.

The world’s two largest automakers said more than 1,100 jobs will be retained because of the partnership, including 250 in Ohio. The remainder will be in Michigan.

“Six-speeds are the future,” said Dave Szczupak, Ford vice president for powertrain operations. “They help to optimize power, smooth operation and fuel economy.”

In 2002, the companies agreed to cooperate on designing, engineering and testing the new transmission.

GM is investing $350 million in the effort, while Ford is putting $370 million into it.

Ford and GM previously sold each others’ parts and had other business relationships over the years, but this effort marks the first time the two have joined on such a broad program.

United Auto Workers vice president Dick Shoemaker said the project proves that manufacturers do not have to go to the South, China or elsewhere for such projects.

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On the Net:

GM: http://www.gm.com

Ford: http://www.ford.com

AP-ES-04-19-04 1328EDT