With the price of gas looking like its only going up — and may
be negatively impacting its sales — automotive giant General Motors Corp. is
looking for a new alternative in an old standby: diesel. GM purchased 50% of
Italian diesel engine manufacturer VM Motori SpA from Penske Corp. on Tuesday
for an undisclosed price.
The Detroit company will jointly develop a new 2.9 liter V-6
turbo diesel engine with VM Motori that will launch in the Cadillac CTS in
Europe in 2009 and the Saturn Aura. GM wants a share of the reportedly 40% of
diesel cars sold in Europe. Diesel engines are known for higher fuel
efficiency, better torque and lower price compared to gas-fueled engines. But
diesel fuel generates more pollution than gas-powered cars, which is one of
the reasons for its decline in popularity in the U.S. In fact, California, New
York, Massachusetts, Maine and Vermont prohibit the sale of diesel-powered
cars. But recent developments in diesel such as a cleaner form called
ultra-low sulfur diesel may make it more competitive to gasoline in the U.S.
Clearly the deal shows that GM doesn't want to fall behind in
new developments in diesel fuel technology, the way it lost ground to Toyota
Motor Corp. on hybrid technology on a worldwide scale. —
Gerald Magpily
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All that diesel engines required was clean burn technology. Now that they have it, I would be first on the list to buy a Saturn Aura-D Great car.