GM, Isuzu Announce Engine Joint Venture
9 September 1998
General Motors, Isuzu Announce Engine Joint Venture; Moraine, Ohio Selected as Manufacturing Site
MORAINE, Ohio--(AutomotiveWire)--Sept. 9, 1998--General Motors Corp. and Isuzu Motors Ltd. (Tokyo) officials Wednesday announced the formation of a new joint venture (JV) company, DMAX Ltd. to manufacture more than 100,000 6.5-liter direct-injection diesel engines per year in the United States.
The joint venture will employ about 700 people, who will be represented by the International Union of Electrical Workers (IUE).
The 650,000 square-foot facility will be North America's most modern diesel engine production site. Capital investment exceeds $100 million, with an overall investment in excess of $300 million. Production could begin as early as the third quarter of 2000, with full production scheduled for 2004.
"This joint venture represents a further strengthening of the partnership between General Motors and Isuzu -- a key step in GM's global strategy," said Jack Smith, GM chairman, CEO and president. "This enterprise represents strategic collaboration between General Motors, Isuzu, the IUE, the local workforce and state and local government -- a model for future new product opportunities."
Kazuhira Seki, Isuzu chairman and CEO, also commented on the partnership. "This is a historic day for Isuzu," he said. "We are proud to have lead development responsibility for General Motors' diesel engines, and look forward to continued cooperation from the IUE, government officials and the men and women of this plant. Each was key to our decision to locate this new venture in Moraine."
The IUE officials also commented on the new enterprise. "IUE is extremely pleased with today's announcement of the joint venture," said Ed Fire, president, IUE. "The employees, both union and management, deserve credit for their efforts to bring this about. The jobs of 500 IUE Local 801 union members here in Dayton have been saved. We are committed to working together as cooperatively as possible with DMAX in the years ahead."
Harold Nichols, chairman of the IUE-GM Conference Board, also voiced his support. "I welcome and support the joint venture between General Motors and Isuzu," he said. "I can assure you that the IUE will work diligently as a partner in this joint venture to ensure its success in hopes of further capital investment and growth as well as job and income security for our members.
"The outstanding workforce at the Moraine Powertrain facility will be a tremendous asset to this venture in providing the expertise that will make this new generation of diesel engines one that we all can be proud of."
General Motors and Isuzu have a long history, beginning with a capital relationship in 1971. Isuzu was given lead development responsibility for diesel engines for GM in October, 1997. This newest joint venture is called DMAX Ltd., signifying the diesel engine and maximum power, cleanliness and fuel economy. Isuzu Motors America Inc., the subsidiary of Isuzu Motors Ltd., is the major shareholder of the JV. Isuzu Motors Ltd. is responsible for design and manufacturing engineering of the all-new product.
The new direct-injection diesel will be suited to truck applications. Compared with competitors' diesels, the innovative powerplant offers low noise, low vibration and superior fuel economy. It also is one of the world's cleanest-burning diesel engines.
Hundreds of the first employees to work for the new company were on hand for the announcement, along with IUE officials and representatives from state, county and municipal government.
