GM's Engines Going Modular

General Motors Corp. will offer more engine and transmission variants but fewer powertrain products in an effort to reduce costs while continuing to meet local demand for fuel economy, emissions and performance, a company executive says at a recent product seminar in Santa Barbara, CA.

“(GM's) gasoline engines over time are going to drop from 27 to 13, diesels from seven to four and transmissions from 19 to 16,” says Tom Stephens, GM's powertrain chief. “In North America, we've got 20 new engine variants over the next three years.”

Modularity allows a basic engine architecture to morph into many different forms. For instance, the Vortec inline 4.2L 6-cyl. engine is used as a base for the forthcoming inline 2.8L 4-cyl. and inline 3.5L 5-cyl. powerplants. Stephens says GM has no plans to strike another engine deal, such as the pact it has with Honda Motor Co. Ltd. that supplies V-6 engines to Saturn.

In other powertrain news, GM executives say the restructuring plan announced Aug. 14 by equity partner Isuzu Motors Ltd. of Japan reduces GM's investment risk to products and operations that are essential to GM.

Chief Financial Officer John Devine tells Ward's that the deal gives GM control of business ventures producing the large DMAX diesel engine and the small car diesel in Europe. The deal reduces GM's equity stake from 49% to 12% in Isuzu, which has been bleeding red ink since the late 1990s.

Also in Santa Barbara, GM reports that sales of its Chevy Blazer and S-10 crew cab pickups in China have been disappointing. Introduced in late 2001 at the Shenyang Jinbei GM Automotive Co. Ltd. joint venture plant, the trucks flopped immediately. In an effort to jump-start sales, prices were reduced in January, but the lower prices haven't helped.