Fiat To Buy Diesel Engines From Isuzu.(Brief Article)

Isuzu Motors Ltd , Japan's largest maker of light trucks, will supply diesel engines for cars to Fiat SpA starting in September 2002, Japanese newspaper Yomiuri Shimbun. Isuzu, owned 49 percent by General Motors Corp., will supply 10,000 units of its V6 3-liter diesel engines annually for use in Fiat's luxury Lancia Thesis, the newspaper said.

"We are in talks with several carmakers on supplying diesel engines but we cannot announce their names," an Isuzu spokesman said. Isuzu recently agreed to start supplying 10,000 to 20,000 of the engines per year to Renault by the end of this year for its luxury Vel Satis model. Isuzu, known for its top-class diesel engines, also supplies them to GM's Swedish unit, Saab Automobile AB, at an annual rate of 10,000. Isuzu now supplies its Polish unit-made 1.7-litre diesel engines to GM's European unit Adam Opel AG for use in the compact Astra and Corsa models. It will supply the same engines to Honda Motor Co. Ltd.'s British unit for use in its Civic model with an annual rate of 15,000 units beginning in November this year.

Demand for fuel-efficient and environment-friendly diesel engines has been rising in Europe as the engines emit less carbon dioxide greenhouse gas than gasoline engine.

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