Automotive giants General Motors and DaimlerChrysler have announced they are to enter into an agreement to jointly produce new, eco-friendly hybrid technology for the new wave of clean vehicles.

According to the BBC, the two companies intend to develop a new system that will enable their cars to run faster and cleaner than the rest of the competition within the clean vehicle market.

Combining combustion engines and electric motors which work together to save fuel and reduce pollution, GM is planning to use the technology in its 4x4 Chevrolet Tahoe and its GMC Yukon models.

DaimlerChrysler has confirmed it will be incorporating the clean fuel technology in its SUV Dodge Durango model.

A memorandum of understanding has already been signed between the two firms, with a final agreement expected some time in early 2005.