July 18, 2007
GM to purchase 50 percent equity in diesel engine plant
Detroit, Michigan – General Motors has announced it has reached a joint venture agreement with Penske Corporation to purchase 50 percent equity of VM Motori SpA, a designer and manufacturer of diesel engines based in Cento, Italy. The investment builds on GM’s existing relationship with VM Motori and its relationship with Isuzu.
“Diesel engines have a very important role in GM’s global advanced propulsion strategy,” said Tom Stephens, group vice president, GM Global Powertrain and Quality. “We are leveraging expertise and resources within our company and through technology partners to ensure we develop the world’s best powertrains.”
At the Geneva Motor Show, GM announced it will jointly develop a new 2.9-litre V6 turbodiesel engine with VM Motori, to launch in the Cadillac CTS in Europe in 2009. VM Motori plans to build the new unit at its Cento plant, and is responsible for the mechanical aspects of the engine’s design, development and testing.
GM currently offers 17 diesel engine variants in 45 vehicle lines worldwide, and sells more than one million diesel engines annually. VM Motori, founded in 1947, specializes in engine design and production for a variety of uses, including light commercial vehicles.