Autoline offered this point of view earlier today:
D3 SHOULD SPIN OFF POWERTRAIN OPS
Should GM, Ford and Stellantis spin off their powertrain operations? They may not want to, but they may not have a choice.
Last year, GM, Ford and Stellantis spent over $23 billion developing new models. A chunk of that money went into new powertrains. And they have to spend that much every single year.
Today, capital is much harder to come by. Interest rates are high and the investment community isn’t as interested in automotive as it was just a few years ago.
The Detroit Three could save billions every year if they combined their engine and transmission business into a separate company. It’s not something they like to talk about and they really don’t want to do it. But the capital demands on the industry are getting to the point where they may not be able to afford to do it on their own.