DETROIT -- General Motors Corp. announced today it has reached a joint venture agreement with Penske Corporation to purchase 50-percent equity of VM Motori S.p.A, a designer and manufacturer of diesel engines based in Cento, Italy.
This investment builds on GM's existing relationship with VM Motori, GM's diesel expertise worldwide, and its strong 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."
GM announced at the Geneva Motor Show that it will jointly develop a new 2.9-liter V-6 turbo diesel engine with VM Motori that is scheduled to launch in the Cadillac CTS in Europe in 2009. GM Powertrain Europe will focus on the development of the first industry application of a clean combustion process called closed-loop combustion control, electronic engine control and exhaust-gas aftertreatment, as well as calibration and integration into GM vehicles. VM Motori plans to build the new unit at its plant in Cento, Italy, and is responsible for the mechanical aspects of the engine's design, development and testing.
Penske Corporation, based in Bloomfield, Mich., is a transportation services company that encompasses retail automotive sales and services, truck leasing, supply chain logistics management, transportation components manufacturing, and high-performance racing.
VM Motori, founded in 1947, specializes in engine design and production for a variety of uses, including light commercial vehicles.
GM currently offers 17 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices from the 1.3L four-cylinder diesel engine sold in the Opel Agila and Corsa, up to the 6.6L V-8 Duramax diesel sold in full-size vans, heavy duty pickups and medium duty trucks in the U.S.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
Forward-looking statements
In this press release and related comments by GM's management, we use words like "expect," "schedule, ""plan," "intend," "pursue," or "believe," to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but the actual events may differ materially due to a variety of important factors. Among other items, such factors include technical innovations, market and regulatory conditions, or changes in the general business or economic environment.
