GM-VM diesel deal

GENERAL Motors has moved to cement its relationship with VM Motori, announcing last week that it had reached a joint-venture agreement with owner Penske Corporation last week to purchase a 50 per cent stake in the Italian diesel-engine engineering and manufacturing firm.

VM Motori diesels are used in an increasing number of GM vehicles, including the Captiva SUV sold in Australia, and development work is continuing on a new 2.9-litre V6 turbo-diesel scheduled for launch in the Cadillac CTS in Europe in 2009.

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