During a ceremony at General Motors' transmission plant in Baltimore on October 29, the company's first Two Mode hybrid transmission rolled off the assembly line.

The transmission was developed as a product of a partnership between BMW AG and the former DaimlerChrysler AG.

According to GM, 78 percent of the transmission's components are supplied by companies in the United States. The units will be used initially in the 2008 Chevrolet Tahoe and the GMC Yukon, which will go into production at the GM plant in Arlington, Texas next week.

Both vehicles are full hybrid capable of running entirely on electricity at speeds of as much as 32 mph. Beyond that threshold, gasoline power or a combination of gas and electrical propulsion come into play.

Working in concert with the company's active fuel management system, the Two Mode hybrid transmission will dramatically increase fuel efficiency, a fact recognized by dignitaries at the ceremony including Sen. Ben Cardin and Sen. Barbara Mikulski, both Democrats representing Maryland.

Next year the Two Mode system will also be placed in the Cadillac Escalade SUV, the Chevrolet Silverado, and the GMC line of Sierra pickups.

BMW will most likely offer the powertrain it the company's X6 crossover after having shown a concept of the unit at the Frankfurt auto show in September.