DETROIT – General Motors and DaimlerChrysler have signed their long-brewing deal to develop hybrid cars together, splitting hybrid development between the two companies. DaimlerChrysler will take the lead for rear-drive luxury cars, while GM will be responsible for developing the hybrid system to be used in trucks, SUVs, and front-drive cars and crossovers.

The two-mode hybrid system is expected to boost fuel economy in vehicles up to 20 percent. The first vehicles to receive the systems in 2007 are the Chevrolet Tahoe/GMC Yukon sport-utes, followed by the Dodge Durango.