21 December 1999

General Motors Corp. has reached an agreement with Honda Motor Co. that could result in Honda engines in GM vehicles sold in the United States. Honda would provide low-emission V6 gasoline engines and automatic transmissions to GM. In exchange, Honda would buy diesel engines through GM’s Isuzu Motors Corp. subsidiary, most likely for use in Europe. The agreement includes no equity stake by either company in the other. The companies said in a statement they will continue independent technology development activities.

Details of the agreement, such as financial terms, number of engines and what vehicles are involved have not been released. GM said the Honda engines could be in its cars within three years. GM said it builds about 2.2 million vehicles a year powered by V6 engines.

GM has also been sharing some engine design duties with Isuzu and Suzuki Motor Corp. of Japan. GM owns a 49% stake in Isuzu and 9.9% of Suzuki. Isuzu has been chosen to design diesel engines for GM, while Suzuki has been pegged as a small-car specialist. GM also has an alliance with Toyota Motor Corp.

Source: Diesel Progress