11 September 2003
Volkswagen and DaimlerChrysler announced they will form a diesel engine partnership. Under the agreement, Volkswagen will deliver 120,000 2-liter, 4-valve, 100 kW (136 hp) turbo diesel engines a year. The first deliveries will be made in 2005; the agreement runs until 2013.
The engines are targeted for use in Chrysler brand vehicles as well as in future models of DaimlerChrysler’s alliance partner Mitsubishi Motors (such as the Grandis minivans). These passenger cars will be marketed exclusively in Europe.
According to Japanese press reports, Mitsubishi said it would be too costly to develop its own Euro 4 (2005) compliant diesel engines.