GM Hires VM for New Cadillac Diesel

General Motors Corp. is reconfirming its commitment to diesels, Cadillac and the European market with a new 2.9L V-6 oilburner that will bow in the '09 CTS sedan.

The auto maker took the wraps off the new powerplant, which was designed in Italy with VM Motori SpA, at the recent Geneva auto show.

GM isn't revealing too many details of its development deal with VM but says the engine uses GM Powertrain technology and will be built by VM at its plant in Centro, Italy.

The deal allows VM to sell the diesel to other OEMs, but officials aren't indicating whether VM already has lined up additional customers.

VM Motori is owned 51% by Penske Group and 49% by DaimlerChrysler AG. It supplied the diesel for the Jeep Liberty in the U.S., but that engine was dropped from the lineup for '07 because it didn't meet tougher emissions standards taking effect.

The new sequentially turbocharged diesel will appear first on '09 CTS sedans sold in Europe and eventually make its way under the hood of unspecified Opel, Saab and Vauxhall vehicles.

It will launch in longitudinal form, but also is designed for transverse applications.

For the CTS, engines will be shipped from Italy to GM's Lansing (MI) Grand River plant where the CTS is assembled, and the finished cars will be exported to Europe.

GM says it has no plans to offer the engine in the U.S. due to unfavorable market conditions.