CENTO, Italy — General Motors and Russian automaker GAZ will be 50/50 partners in VM Motori, the well-known Italian manufacturer of diesel engines.
GAZ is acquiring its stake in the business from Penske Corporation. Sergey Zanozin, CEO of GAZ, said, "This equity ownership agreement enables [us] to access world-class diesel engine design and manufacturing. It's a highly promising investment opportunity, given the significant increase in demand for diesel engines in Russia and the positive business development of VM Motori globally."
GM acquired its 50 percent stake in 2007. VM Motori continues to supply diesel engines to Opel and is jointly developing a new 2.9-liter V6 turbodiesel for the European edition of the Cadillac CTS in 2009.
GAZ plans to set up local production in Russia of diesel engines licensed from VM Motori. The engines will be used initially in the automaker's Gazelle and Maxus vans and trucks.
What this means to you: GM now has partnerships with Russia's two largest automakers. — Paul Lienert, Correspondent
GAZ is acquiring its stake in the business from Penske Corporation. Sergey Zanozin, CEO of GAZ, said, "This equity ownership agreement enables [us] to access world-class diesel engine design and manufacturing. It's a highly promising investment opportunity, given the significant increase in demand for diesel engines in Russia and the positive business development of VM Motori globally."
GM acquired its 50 percent stake in 2007. VM Motori continues to supply diesel engines to Opel and is jointly developing a new 2.9-liter V6 turbodiesel for the European edition of the Cadillac CTS in 2009.
GAZ plans to set up local production in Russia of diesel engines licensed from VM Motori. The engines will be used initially in the automaker's Gazelle and Maxus vans and trucks.
What this means to you: GM now has partnerships with Russia's two largest automakers. — Paul Lienert, Correspondent
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