GM Plans Investment of 50 Percent in Equity Interest in VM Motori

General Motors Corp. announced 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.

“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.