GM Investing $445 Million in New Thai Diesel Engine Plant, Thai Operations

13 August 2008

General Motors is investing $445 million to build an engine plant and upgrade an existing vehicle assembly plant in Thailand. The new 14,492 m² (156,000 ft²) facility will be GM’s first diesel engine plant in Southeast Asia and will provide four-cylinder diesel engines for use by Chevrolet in Thailand and other global markets and brands.

The investment also includes engineering development work and retooling of the Rayong vehicle assembly plant for production of the next-generation Chevrolet Colorado small pickup truck, which is sold in Thailand and exported around the world.

The engine plant, which is scheduled to begin production in 2010, will have the capacity to manufacture more than 100,000 2.5-liter and 2.8-liter turbo-diesel engines annually. Among the first applications will be the next-generation Colorado. The engines were designed and developed by GM and VM Motori S.p.A., a designer and manufacturer of diesel engines based in Cento, Italy. GM purchased a 50% equity stake in VM Motori in 2007 to form a joint venture with Penske Corporation. (Earlier post.)

This plant is an example of how we are proactively pursuing two key aspects of GM’s global strategy. The first is the accelerated application of alternative fuels and propulsion systems to reduce global dependency on fossil fuels. The second is growth in the emerging markets, including the ASEAN region, as a key factor in our continued global leadership.

Diesel engines play a very important role in GM’s global advanced propulsion strategy. We are leveraging expertise and resources within our company and through our technology partnerships to ensure we develop the world’s best engines. This investment will also support manufacturing and grow advanced propulsion technology capability in Thailand and across Asia Pacific.

—Rick Wagoner, GM Chairman and CEO

GM currently offers 22 diesel engine variants in 36 vehicle lines around the world. GM sells more than 1 million diesel engines annually, ranging from the 1.3-liter four-cylinder diesel engine sold in the Opel Agila and Corsa, up to the 6.6-liter V-8 Duramax diesel sold in full-size vans, heavy-duty pickups and medium-duty trucks in the US.