General Motors Corp. announced Monday that it has agreed to buy 50% of
Italian diesel engine manufacturer VM Motori S.p.A. from Penske Corp.
in a deal expected to expand GM's diesel expertise in global markets.
“Diesel engines have a very important role in GM's global advanced
propulsion strategy,” Tom Stephens, group vice president of global
powertrain and quality, said in a statement.
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“We are leveraging expertise and resources within our
company and through technology partners to ensure we develop the
world's best powertrains.”
GM Powertrain Vice President of Engineering Dan Hancock said during a
conference call Monday that GM is particularly interested in VM
Motori's expertise building diesel engines for the midsize trucks that
are used as commercial vehicles in Europe and Asia.
Motori also makes diesel engines for passenger vehicles. And GM
announced plans in March to work with VM Motori to jointly develop a GM
2.9-liter V6 diesel for the 2009 European Cadillac CTS.
GM Vice Chairman Bob Lutz said in a video statement last week that GM
will build diesel cars, crossovers, SUVs and light trucks for the U.S.
market, though he did not say when.
Hancock would not say Monday whether the VM Motori investment is
related to Lutz's statement or whether GM plans to build a diesel
Cadillac for the United States.
Automotive News has reported that the 2.9-liter diesel engine would
most likely appear in the United States in the Cadillac CTS and Saturn
Aura in 2009 and 2010.
Neither GM nor Penske would disclose the terms of the deal. Hancock said he expects the deal to close by Sept. 30.
Ludvik Koci, a Penske director, said it's hard to pinpoint when the GM
deal will close. Penske is waiting for European regulatory approval of
a deal to buy 49% of VM Motori from DaimlerChrysler AG.
When that deal is complete, Penske plans to complete the sale of half
of the 60-year-old Cento, Italy, company to GM. But that deal also will
need regulatory approval, Koci said.
DaimlerChrysler spokespeople were not available for comment late
Monday, due to the six-hour time difference between Detroit and Germany.
