[MV] GM Diesel Engine Stance
Julian Burke (julianb@esper.com)
Sun, 18 Jul 1999 14:36:41 -0400
Hello list, In reference to Glenn's posting below, here is exactly what
is going on. I have very CLOSE contacts to Chrysler, GM Engine Platform
Ass'y and of course, AMG. Two weeks ago AMG announced what their plans are.
Here is more in depth that you won't see in the trade journals: GM has for
some time been wanting to introduce the 6.6 TD to replace the 6.5 as they
did previously with the 6.2 diesel family. This will be a joint venture
between GM and Isuzu. Isuzu is also partly owned by GM and produces a
pretty damn good diesel engine family. Once GM introduces a new line of
engines, they are not particularly interested in keeping up with replacement
engines. (replacement parts are union too and they want to get rid of this
annoyance whenever possible) All GM diesel engines are primarily
manufactured in Moraine, Ohio. There is also a GM engine plant in Kansas
but will tool up for other GM endeavors. GM pretty much calls all of its'
diesel engine family "Detroit Diesel". Now the good part: AMG has for
years contracted with GM for the diesel power for the Hummers. When GM
discontinued the 6.2's, the 6.5's would fit the same "footprint" with little
engineering changeovers. So when 6.5's were introduced, this affected AMG
very little. Now, when the 6.6's are introduced to the late 2000 or 2001
model year, they most likely WILL NOT fit the same footprint. In a very
mutual agreement between AMG and GM, AMG will produce the 6.5's exclusively
which will fullfill their engine needs AND will sell replacement/contract
engines back to GM. All AMG bought was the tooling and the rights to build
the 6.5 diesel engine-that's ALL-not the entire "Detroit Diesel" line. To
AMG, there is no need for anything else other than the 6.5. 6.2's may not
be produced completely except for replacement parts. The current building
where they are being produced will be torn down for other GM endeavors. AMG
is/will building another plant (also in Moriane, Ohio) for this particular
engine family of which they will own. Groundbreaking hasn't happened yet
but very soon. This is a WIN-WIN situation for all involved and a happy one
at that! Now for other earth shattering news: GM dealers (selected) will
also be selling the HUMMER line (CIVILIAN ONLY). GM bought the part of the
name rights "HUMMER" for representation in their dealer facilities. What a
"good marriage"! This is from the "horse's mouth" and should clear up any
rumors. It's also very good PR for GM to have part of its' engine family in
the HUMMER line as it is an awesome machine.
"Just another thought. Be aware that GM sold its entire line of Detroit
Diesel
>light truck engines to AM General. AMG bought all production facilities
and
>rights to the engines and will continue to produce complete 6.5 and 6.2
liter
>diesels as wells as parts for same for 10 years under a contract to sell
them
>back to GM for parts divisions as well as "certain contract installations".
>AMG will continue to install these engines in their line of Hummers for
the
>forseeable future and GM is free to install them in special order contract
>trucks. It will be interesting to see what happens."
>
>Glenn, MVPA
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