GM, BMW in talks over Cadillac engine link-up

[Kirby]

[unsure]

GM, BMW in talks over Cadillac engine link-up
By James Mackintosh in London
Published: November 23 2004 18:15 | Last updated: November 23 2004 18:15

General Motors, the world's largest car-maker, is in talks with BMW about using the German manufacturer's high-performance diesel engines in its Cadillac luxury cars in Europe after doubling forecast sales in the region.

GM is also considering using engines from its joint venture with Fiat, an Italian manufacturer, which are already used in its Saab cars. It is also possible that an Isuzu V6 diesel used in the Opel/Vauxhall Vectra could be improved for Cadillac.

According to people close to the discussions, a decision is not imminent. But Bob Lutz, vice-chairman of GM, indicated that it could be finalised ahead of the Geneva Motor Show next March.

Cadillac is trying to break into the European premium car market and establish itself as a global brand, a move also being made by Toyota's Lexus division and Nissan's Infiniti.

All the brands see success in Europe - home of BMW and Mercedes-Benz, the leading luxury marques - as essential to their credibility elsewhere. Diesel engines are seen by Cadillac executives as vital to compete properly in the European market, where they power almost half of cars sold.

 

[epj3]

OMG This will drive my roommate nuts (He told me Gm builds the best engines in the world; and said (I'm not kidding) "BMW's engines are junk"

Of course, that was before he ever rode in my car.

 

[epj3]

By the way - Cadillac is a direct competitor of BMW.... why is bmw going to HELP them get into the european market? Europeans hate american cars (for the most part), except for Chrysler. I HIGHLY doubt Cadillac's will sell over there.

 

[bmw046series]

And BMW couldn't care less because no matter what they will make money.

 

[epj3]

And BMW couldn't care less because no matter what they will make money.

Well... it sounds like they are in just in talks, and that GM is proposing the deal - not bmw. I don't think it'll bother BMW's sales at all.