BMW and DaimlerChrysler are teaming up to develop hybrid transmission systems for rear-wheel-drive premium cars.

These transmission systems will be for so-called “mild hybrids,” which boost acceleration and can make engines work more efficiently in stop-and-go traffic, but can’t run on battery power alone and don’t offer the same fuel savings as a full hybrid (like a Toyota Prius, which connects an electric motor and batteries to a standard combustion engine.). The carmakers should have the mild hybrid vehicles ready for the road in the next 3 years.

The hybrid move by German automakers has surprised some analyists. BMW and DaimlerChrysler have dismissed hybrids as a passing fad, but the popularity of vehicles like the Prius and the increasing concerns about global warming have them rethinking earlier assumptions. They even see full hybrids are on the horizon: Daimler's Mercedes-Benz is expected to launch a full hybrid vehicle within a year or so and BMW plans a full hybrid within three years.

CNNMoney.com