Isuzu Studies European Engine Production

09/27/96

Reuters reports that Isuzu Motors Ltd is studying the feasibility of producing diesel engines in Europe, an Isuzu spokesman said on Wednesday.

Nihon Keizai Shimbun (Nikkei), a Japanese economic daily, reported on Saturday that Isuzu would invest 50 billion yen towards the production of diesel engines in Poland, and hoped to make 300,000 units per year.

An Isuzu spokesman said, "we have not decided on any details yet, such as production volume, the plant site and investment cost." He added, "Poland is one of the candidate countries" the spokesman said.

Industry sources said Isuzu's feasibility study covers the company's plan to produce 1,500cc and 1,700cc engines for Adam Opel AG, GM's German unit. Adam Opel plans to set up a unit in Poland to produce cars. General Motors owns 37.4 percent of Isuzu, which supplied 186,000 Japanese-made diesel engines to Opel in 1995.

Paul Dever -- The Auto Channel