Belgium-based Punch Group has acquired GM’s propulsion engineering center in Turin, Italy. The transaction between the two companies includes an engineering services agreement (ESA) to support GM’s global product programs through the end of 2021.

Since 2005, Turin has served as a global center of excellence for diesel propulsion systems and electronics for GM.

The GM Powertrain Engineering Development Center in Turin, Italy was the project leader for the US Chevrolet Cruze diesel and was the engineering center responsible for the engineering for the majority of the millions of small-displacement GM diesel engines sold throughout the world.

Punch Group plans to reposition the company with developments for new market segments while continuing to provide engineering services to GM. The agreement ensures the ongoing viability of the engineering center and employment of its workforce.

This addition to our global portfolio will help the Punch Group execute our vision to be the leading integrator and manufacturer of driveline solutions. The focus of this business will be to deliver world-class engineering services to GM and new clients. This includes developing engine applications for new segments, supporting the manufacturing of engines, and providing both engine and transmission solutions in markets worldwide.

— Punch Group Founder and CEO Guido Dumarey

For GM, the agreement is intended to ensure the continuity of engineering services on key GM programs, as the company continues to transform and consolidate its global engineering organization.

The work will continue to support our global operations and allow us to focus our internal efforts on long-term solutions.

—Doug Parks, executive vice president, GM

Employees of GM Turin are now employees of Punch Group and will continue to support future GM programs through the ESA. The two companies will continue to work together to ensure a smooth transition from GM to Punch Group.