Isuzu Motors Ltd. (Japan) has reached an agreement with General Motors to lead GM's worldwide diesel engine development. Isuzu, which is 37.5% owned by GM, said a final agreement on Isuzu's exact role has yet to be finalized, including diesel engine production by Isuzu in North America. However, Isuzu said it plans to build up to 500,000 diesels in North America, either in an existing GM plant, or a new facility, around the year 2000. These engines would reportedly replace 200,000 to 300,000 engines built by GM for minvans and small buses.

Isuzu, which currently builds almost one million diesels annually, is also building a diesel manufacturing plant in Poland, with a reported capacity of 300,000 diesels annually, mostly to supply GM's European division, Adam Opel AG.

Source: Diesel Progress