GM to not bring engines from Piaggio
Owing to the tremendous progress in the Indian auto market, General Motors, the American auto major was in news for its plans to import the diesel engines from Italian firm Piaggio. The engines would have been employed in the passenger and commercial vehicles for the General Motor’s portfolio vehicles. But as per the recent reports, the company has called off the plans of importing these diesel engines due to some unspecified reasons.
General Motors is now looking forward for Chinese engine making firms in order to import parts to launch cars from the Shanghai Automotive Industry Corporation (SAIC) of India.
The reports claim that SAIC has purchased 50% stake in GM India by making an investment of over $500 million. Yunnei Diesel Engine Company based in Southwest China is the latest destination of GM to import the engines from. In the middle of year 2010, SAIC, the company specializing in petrol engines, showed a deep interest in acquiring Yunnei which in turn would help the American major in having a strong source of diesel engines. The reports claimed that Piaggio is working hard towards the Baramati manufacturing plant based in Maharashtra which will be enhanced to produce one-litre and two-litre diesel engines which will be used in two and four-wheelers. The company is claimed to make an investment of $ 60 million for establishing a new diesel engine producing plant. For now the company exports its 125cc and 150cc capacity engines to Italy.
The reports says that GM has been outsourcing the engine manufacturing to other companies since a long time. The fact is evident from BS-IV engines outsourced to Sonalika Group based in Delhi.
Addressing the issue, Ravi Chopra who is the chairman and managing director in Piaggio Vehicles stated that company is looking forward for better deals of outsourcing the engine production.
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