Auto industry dynamics went for a spin on Monday morning, when DaimlerChrysler and General Motors announced they were working on a two-mode full hybrid propulsion system together and that other companies were welcome to take part if they wanted.

The Stuttgart- and Detroit-based companies said the system would have front- and rear-drive applications and would provide their front- and rear-drive cars, trucks and ''other vehicles'' with better acceleration and ''significantly'' improved fuel economy.

While it's a common system, the firms said, the two-mode full hybrid system would have ''unique applications for each company's vehicles.''

The companies said that combining the hybrid development efforts of DaimlerChrysler and GM will position them ''for leadership in this technology.''

At the same time, that leadership position is apparently not restricted, since the two firms quickly added that ''the wide-ranging program will allow opportunities for additional partners, and could become a hybrid source for other auto manufacturers.''

According to the official release announcing the agreement, ''the development of a common hybrid propulsion architecture is the basis of the cooperation, while retaining the distinctiveness in feel and performance for the GM, Mercedes Car Group and Chrysler Group brands. The two-mode full hybrid drive system will be mated to different engines and the respective vehicle programs will have unique performance dynamics and calibration. Each company will integrate the two-mode full hybrid into its own vehicles.''

Both companies have been working independently on their own hybrid propulsion systems for their range of passenger vehicles. For example, GM has said that its first application of a full hybrid would be launched in late 2007 in the Chevrolet Tahoe and GMC Yukon full-size SUVs.

''Our planned cooperation will draw on the technical expertise of two of the largest auto companies in the world,'' said Dr. Thomas Weber, DaimlerChrysler Board of Management member with responsibility for Research and Technology and Development in the Mercedes Car Group. ''The result is expected to be a series of strong hybrid propulsion systems that will serve as a solution for our alternative powertrain needs.''

GM's group vice-president of powertrains, Tom Stephens, said ''the performance, fuel economy and more efficient packaging of the two-mode full hybrid allow applications to a broad spectrum of vehicles and driving cycles. We believe it is the most efficient full hybrid design for any vehicle configuration.''

Mercedes-Benz will focus on high-tech hybrid propulsion systems in rear-wheel drive passenger cars in the luxury segment, Weber said, and hybrid technology will be an integral part of its advanced powertrain strategy within the next several years.

The team members that will develop the hybrid system will be located in Michigan, but will come from all over the world, said Eric Ridenour, executive vice-president of product development for the Chrysler Group. ''A world-class hybrid system will complement the global fuel economy benefits that DaimlerChrysler offers customers through technologies such as cylinder deactivation -- Chrysler Group's Multi-Displacement System -- and modern diesel engines.''

Chrysler Group will offer a range of hybrids, Ridenour said, but its first application of this system will be in the Dodge Durango shortly following the GM SUVs.

Today's typical single-mode systems rely on much larger electric motors than are needed in the patent-protected two-mode system, said Stephens.