The GAZ Group and General Motors reach agreement on a Joint Venture for ownership of VM Motori


Ferrara, 5 November 2008 - The Gaz Group, one of the largest Russian automakers, will purchase 50% of VM motori, on the strength of an agreement made with General Motors, which joined VM in 2007 .
GAZ Group will purchase the share package of VM motori S.p.A in accordance with a contract of sale of the shares stipulated with Penske Corporation, the company that, prior to the arrival of General Motors owned the entire share package of VM.
VM Motori, specialized in the design and production of diesel engines, and a leader in the sector with headquarters in Cento, will enable the Gaz Group to undertake production of diesel engines for its Gazelle and Maxus lines of light trucks, on license from VM Motori. The local production will make it possible to satisfy the growing demand for light diesel engines by the Russian manufactures of industrial vehicles for road construction and farm machinery.
GM has already purchased 50 % of VM Motori from Penske Corporation in 2007, after 10 years of cooperation with the company in the supply of engines for Opel, and in the recent technological agreements for the production of VM engines in Thailand and Mercosur.
VM Motori employs more than 1200 people and in 2006 produced 70,000 diesel engines, 80% of which were exported, for a turnover in excess of 300 million euro.

VM's winning cards? Firstly its vocation for innovation, exemplified by the 7-8% of turnover which it invests in research and development. But also its use of the most advanced multi-valve and common-rail technology, combined with the development of original manufacturing solutions and a tradition of workshop experimentation which have given VM's engines their unique functional features and their versatility. Among the resulting benefits, their flexibility of use, their spatial compactness, their elevated specific power, and their exceptionally low pollutant gas emissions, all combining to render VM engines capable of satisfying their clients' most elaborate requirements.

“Diesel engines are an important part of GM's global strategy for technologically advanced propulsion methods”, explains the vice-president of GM's Global Powertrain and Quality group Tom Stephens . “We count on our own expertise and skills together with agreements with technologically advanced partners in our quest to develop the best engines in the world.”

“VM regards its new shareholding structure as a highly positive development” explains Chief Executive and Vice-president Vilmo Ferioli . “The fact of having someone like GM onboard, with its dimensions and its global presence, will help us acquire new methods and make further progress in our technological evolution, the qualities of our products and the consistency of our investments. And above all it will provide a further guarantee of solidity for our company's future development.” “The relationship between VM and GM - adds Ferioli - has been flourishing for over ten years now, ever since the agreement to supply the engines for the Opel Frontera. Our collaboration has developed and consolidated itself over time, via the technology transfer with GM Daewoo Korea and then the arrangement to develop the new V6 2.9 L engine, created in collaboration with GM.”

See also: A vocation for Export in a highly competitive region, hence Chrysler's presence in VM since 2000




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