General Motors has decided to concentrate its global diesel engineering activities here despite its divorce from the Fiat Group, parent of Fiat Auto.
Under the terms that ended GM and Fiat's five-year alliance, the Fiat-GM Powertrain joint venture here will be dissolved. But GM will open a global diesel development center here employing about 150 people, mainly engineers.
In an internal memo, Tom Stephens, group vice president of GM Powertrain, said that several activities, including global diesel engine and control system work, will be carried out in Turin.
GM Powertrain officials met with Turin city officials on Feb. 23 so GM could outline its plans and discuss a possible site.
About one-third of the 1.55 billion euros (about $2 billion) that GM agreed to pay to Fiat is related to sharing diesel technology and joint ownership of an engine plant in Poland.
According to the deal, GM will:
Since the introduction of common-rail diesel, the diesel share of new-car sales in Europe has grown from 24.8 percent in 1988 to 48.3 percent in 2004. Diesel engines are expected to be in half of all new cars sold in Europe this year.