GM Powertrain Europe's Greg Deveson: Turin is close to customers, but not too close.
"Working from Turin permits us to serve all our brands - Opel, Vauxhall, Cadillac, Chevrolet and Saab - without being too close to just one of them," says Greg Deveson, general manager of GM Powertrain Europe and vice president of GM Powertrain.
Deveson's other reasons for staying in Turin are that it has "skilled engineers, a good network of dedicated suppliers and a supporting engineering university."
As part of their agreement to end their 5-year-old alliance, GM and Fiat S.p.A. broke up their Fiat-GM Powertrain joint venture, which was in Turin, Fiat's corporate headquarters. Deveson was CEO of Fiat-GM Powertrain.
After the breakup, GM created GM Powertrain Europe.
The division started operations May 13.
GM invested 10 million euros, or about $12.1 million at current rates, to set up its new headquarters, which opened June 21.
GM Powertrain Europe has a long-term lease on an office building on the city's northern outskirts. The ground floor of the building is leased to a Peugeot dealership.
GM also is looking for land in Turin to build an engineering center. The site will be selected by year end, and the center will be completed by 2007. The automaker also opened a global diesel development center in Turin.
GM Powertrain Europe is in charge of engineering centers in Germany and Sweden and manufacturing operations in Austria, Germany, Hungary and Sweden.
The division produces 1.5 million engines and 1.1 million transmissions a year.
GM Powertrain Europe employs 10,000 people, 130 of them in Turin. But the company expects that number to double in the next year to 18 months.