Diesel Bombers - Interesting Times

from Diesel Progress Online | Home Page

General Motors Brazil and MWM International Motores, an affiliate of Navistar Inc., have signed a strategic agreement to manufacture 420,000 units of a completely new diesel engine to serve GM’s new vehicle line to be launched by 2011. The engines will be supplied for GM in Brazil and the vehicles will also serve export markets.

The directors for both companies signed the seven-year engine supply contract at GM headquarters in São Caetano do Sul, São Paulo, Brazil. Considering the current conditions of the global vehicle market, both companies estimate that volumes can reach 60,000 units per year. This represents the largest contract between GM and a supplier in Brazil.

"This partnership demonstrates the confidence of GM Brazil in its long-standing supplier, MWM International, which has supplied GM with diesel engines since 1964,” said Jaime Ardila, president of General Motors in Brazil and Mercosul. Ardila said the partnership “is aligned with our strategic objective to have all Chevrolet lines completely renewed by 2012.”

Jack Allen, president of Navistar’s Engine Group added that the agreement "helps both companies to expand business in global markets and furthers Navistar’s global diversification strategy”

Waldey Sanchez, president and CEO of MWM International Motores, said that for the production of the new 2.8 L, four-cylinder diesel engine to GM, the company will dedicate investments equivalent to US$ 80 million in its plants in Canoas, Rio Grande du Sul, Brazil; Santo Amaro, São Paulo, Brazil; and Jesus Maria, Argentina; and will generate 400 new direct jobs. “The new agreement with GM represents the biggest contract in MWM International’s history,” Sanchez said.