GM buys 50% of VM Motori.

stngray71 · **Joined:** Fri Jan 05, 2007 6:19 pm **Posts:** 5

There is an article in the "Detroit News Online" in the Auto Insider section. I dont know if this is good or bad.

techTim · **Posted:** Mon Jul 16, 2007 8:42 pm

huh, detroit diesel owns the other majority I think, maybe a move in the domestic market towards light diesel power.

maybe the general knows something nobody else does?
interesting thought though, with cummins bringing smaller displacement engines to market soon, maybe the big three are looking at little diesels seriously, after all, the liberty experiment was a success to a fault. :twisted:

Joe Romas · **Posted:** Mon Jul 16, 2007 9:26 pm

I understood that Penski group owned 52% and Detroit/DC owned 48%. I wonder who they bought out :?:

GM is using the VM V6 in the Cadiliac CTX for Europe already.

BKH · **Posted:** Mon Jul 16, 2007 10:05 pm

Here's a copy of the story I read --

GM, Penske Enter Join Venture For Italian Diesel-Engine Maker
By NEAL E. BOUDETTE and TERRY KOSDROSKY

July 16, 2007 6:01 p.m.

In a move to bolster its position in diesel engines, General Motors Corp. has agreed to buy 50% of an Italian diesel-engine maker from Penske Corp.
The company, VM Motori SpA, will become a joint venture of Penske and GM when the transaction closes later this year, GM officials said in a conference call. Terms weren't disclosed.

Like many other auto makers, GM is increasing the number of vehicles it offers with diesel engines, which offer better fuel efficiency than gasoline-powered engines. VM Motori and GM are jointly developing a 2.9-liter V6 engine that GM will offer in a version of the Cadillac CTS sedan it plans to launch in Europe in 2009. The company already offers a 2.0-liter four-cylinder diesel engine made by VM in some of its Opel, Vauxhall and Chevrolet models sold in Europe.
Based in Cento in north eastern Italy, VM Motori developed diesel technologies and produces about 100,000 engines a year. Until recently, it had been owned by Penske and DaimlerChrysler AG, with Penske holding a majority stake.

GM primarily aims to use VM's engines in light commercial vehicles, mostly in emerging markets, Daniel M. Hancock, GM's vice president for global powertrain engineering, said in a conference call. More than half the vehicles sold in Europe are equipped with diesel engines, but only about 3% of the vehicles sold in the U.S. are diesel, in part due to stringent emissions standards that vary among different states.

Last week GM Vice Chairman Bob Lutz said in a video on the auto maker's blog that GM is planning to offer diesel engines for several of the cars and trucks it sells in the U.S. He said GM is planning to offer diesel engines in Cadillac and Saturn vehicles as well as sports-utility vehicles and trucks, and is working on a range of engines, including a 4.5-liter, all-aluminum V8.

He cautioned, however, that diesels equipped with technology to meet tough U.S. emissions standards will be at least $2,000 more expensive than gasoline engines. "Don't assume diesel will be a panacea," Mr. Lutz said.

KJbob · **Posted:** Tue Jul 17, 2007 9:42 am

BKH wrote:

He cautioned, however, that diesels equipped with technology to meet tough U.S. emissions standards will be at least $2,000 more expensive than gasoline engines. "Don't assume diesel will be a panacea," Mr. Lutz said.

Why is Lutz always so "down" on diesel technology? :roll:

With this attitude, why even bother?

DarbyWalters · **Posted:** Tue Jul 17, 2007 9:48 am

Honestly, Lutz is a Putz!!!

Nothing like buying into a diesel ... naming multiple models that will use the diesel ... and then CYA by saying basically that the diesel isn't a cure ... he needs to ask his wife to give him his "spine" back :roll:

richardkf · **Joined:** Wed Jun 14, 2006 4:15 pm **Posts:** 167

Lutz is down on ANYTHING that GM has to do to remain competitive if it involves spending money to keep pace with the rest of the industry, which is why GM is always last to the party anytime new trends in styling or technology go mainstream in the U.S. market.

Pablo · **Joined:** Thu Feb 02, 2006 10:06 pm **Posts:** 1201

So who owns what?

Did Penske sell 50% of what it owned or its 50% share? Is Detroit D still around?

Joe Romas · **Posted:** Wed Jul 18, 2007 7:32 am

Pablo wrote:

So who owns what?

Did Penske sell 50% of what it owned or its 50% share? Is Detroit D still around?

Good question! It looks to me like Detroit (Diamler-Benze) and GM are now partners in it. Industry people didn't understand why Detroit didn't get it all the first time around :lol:

Didn't GM used to own Detroil years ago

HIKJ · **Posted:** Wed Jul 18, 2007 12:29 pm

It looks as if Chrysler has sold its share in VM. If that is correct, the new owners of Chrysler apparently feel that VM does not belong to its core activities, which may not be good news for us, CRD owners.

onejohny · **Posted:** Wed Jul 18, 2007 9:32 pm

Watch "Who killed the Electric Car" for insight into what GM may have in mind.

RFCRD · **Posted:** Thu Jul 19, 2007 2:11 am

Auto manufacturers buy part suppliers as a normal course of business. Chrysler went through the same thing in the early 1980's when they purchased many of their suppliers to contain costs and gain control over quality & production/availability. GM uses a lot of VM engines in Europe and elsewhere smog laws aren't an issue. It does not surprise me to see GM purchasing VM, especially from an owner like DCX that is struggling. This does not necessarily mean that GM wants to make more diesels, just that it is a reality of the competitive marketplace and this purchase makes economic sense.

RedStapler · **Joined:** Fri May 11, 2007 10:04 am **Posts:** 77

HIKJ wrote:

It looks as if Chrysler has sold its share in VM. If that is correct, the new owners of Chrysler apparently feel that VM does not belong to its core activities, which may not be good news for us, CRD owners.

We are already orphans. I'm not too worried though, there is a big enough installed base of our engines that parts should be available for some time still. It may involve a wait though. Anything not engine specific is from the Chrysler parts bin.

nescosmo · **Joined:** Sat Jul 14, 2007 11:17 pm **Posts:** 202

RedStapler wrote:

HIKJ wrote:

It looks as if Chrysler has sold its share in VM. If that is correct, the new owners of Chrysler apparently feel that VM does not belong to its core activities, which may not be good news for us, CRD owners.

We are already orphans. I'm not too worried though, there is a big enough installed base of our engines that parts should be available for some time still. It may involve a wait though. Anything not engine specific is from the Chrysler parts bin.

I would say by 2020 GM, Chrysler and Ford will be gone. Not enough Pants.

Nescosmo.

Pablo · **Joined:** Thu Feb 02, 2006 10:06 pm **Posts:** 1201

RedStapler wrote:

HIKJ wrote:

It looks as if Chrysler has sold its share in VM. If that is correct, the new owners of Chrysler apparently feel that VM does not belong to its core activities, which may not be good news for us, CRD owners.

We are already orphans. I'm not too worried though, there is a big enough installed base of our engines that parts should be available for some time still. It may involve a wait though. Anything not engine specific is from the Chrysler parts bin.

Im not worried either. Parts for this engine should be available for as long as the 3.7 at least. It is a tractor/marine/industrial motor as well as a motor in mini-vans and Jeeps across Europe. Everything for this vehicle is either...

1. Available from BOSH or VM and will be for 20 years.
2. Same as the gasser Liberty and available for as long as they will be.
3. Used in some other application and ready available.
4. Is crap that needs to be replaced aftermarket or disabled anyway (torque converter, fuel filter assembly, suspension springs, fuel lines, EGR).

The only thing that worries me is the CRD specific programming for the TCU, the potentially unique BOSH (but rebuildable) fuel pump.

I think parts will be available as they are now-- you just have wait for them to get sent from New York, LA, Italy, or Germany (same as now). I also think this is why any future CRD vehicle sales in the US are doomed (incompetant dealers and an even worse supply chain).

I hope GM and VM are paying attention to the CRD parts shortage and dealer competancy fiascos... both of their reputations in the US are at stake. They have a couple years left to get it right. I would like to see that new V6 in an H3 (or smaller H4)!

nfmisso · **Posted:** Fri Jul 20, 2007 9:59 pm

People;

According the VM Motori's website, GM purchased Penske's share. See:
http://www.vmmotori.it/en/03/00/dettaglio.jsp?id=102

The balance of the company is still owned by DCX.

Detroit Diesel used to be part of GM, and was bought by Penske. The famous drag racing superchargers 4-71/6-71/8-71 were from Detroit Diesel (GMC) engines of the '50, with 71 cubic inches per cylinder.

BCool · **Posted:** Fri Jul 20, 2007 10:57 pm

Joint venture agreement with penske sounds like diamler was the sell out. Penske and Gm are owners.

BCool · **Posted:** Fri Jul 20, 2007 11:00 pm

The new 2.8 liter has gains of 40 nm of torque http://www.vmmotori.it/en/01/00/01/dettaglio.jsp?id=56

Jeger · **Posted:** Sat Jul 21, 2007 11:20 am

Whoever wrote this must know more than what has been officially released.

Quote:

In 2007 Penske Corporation bought the remaining 49% of VM from DaimlerChrysler AG and subsequently sold 50% of it to General Motors.[1] Both deals are awaiting European regulartory approval; the value of the deal is still not known.

From here:

http://en.wikipedia.org/wiki/VM_Motori

Pablo · **Joined:** Thu Feb 02, 2006 10:06 pm **Posts:** 1201

http://www.vmmotori.it/en/03/00/dettaglio.jsp?id=100

Yummy. I want a 4-door.

GM buys 50% of VM Motori.

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