In February, GM announced that it will produce a new two-mode hybrid transmission at its Baltimore Transmission plant in Maryland. Production of the transmission will mean an $118 million investment to upgrade the facility and the creation of 87 new UAW-organized jobs at Local 239.

The new rear-wheel-drive transmission will go into production in 2007 and will initially be used in GM's full-size SUVs: the Chevrolet Tahoe Hybrid and GMC Yukon Hybrid. The two-mode hybrid system will be mated to a Vortec V8 with cylinder deactivation for a fuel efficiency gain of at least 25 percent by:

• Capturing electrical energy through regenerative braking
• Shutting the engine off (and fuel) at idle and during deceleration
• Providing an all-electric launch and drive capability

Two-mode hybrid technology uses a variable transmission with two electric motors and two hybrid modes of operation. The addition of a second mode to the drive system improves efficiency and reduces the need for exceedingly large electric motors. The second mode is used mostly when the vehicle is at higher speeds, such as on the highway, so fuel economy will be optimized in both city and highway driving.

• See GM's Press Release - GM Announces Production Of First Light-Duty, Hybrid Transmission
• See Detroit News - GM steps up hybrid technology