18 September 1999

Japan's Isuzu Motors opened a $200 million diesel engine plant in Poland. The plant is located in the city in of Tychy in a special economic zone, where Isuzu will receive a 10-year corporate tax break.

The initial production volume of 100,000 engine per year is scheduled to increase to 300,000 engines annually by 2003. First engines will be supplied for Opel Astra cars manufactured by General Motors' subsidiary Opel AG in its plant in Warsaw, Poland.

Since over 60% of parts come from western Europe, the engines manufactured in Poland will have free access to the European Union markets. The engines will be later supplied to GM automotive plants in Germany and other EU countries.

GM is holding a 49% stake in Isuzu Motors. The two companies agreed last year that Isuzu would take over development of diesel engines as part of a global reorganization of GM's powertrain operations.

In the USA, the companies formed a new venture, called DMAX Ltd., owned 60% by Isuzu and 40% by GM. DMAX will produce direct-injection, common rail diesel engine to be used in the 2001 GM pick-up trucks.

Source: Reuters