UPDATE - Isuzu to make diesel engines for Renault - paper
Date: 30-Aug-01
Country: JAPAN
Renault confirmed that it would outsource production of the engines for use in its Versatis luxury cars due out around the end of the year, but declined to identify a supplier or the number of engines to be outsourced.
"It wouldn't be profitable for Renault to develop this type of engine by itself," a spokesman said.
Isuzu, which is 49 percent owned by General Motors Corp, declined to comment on the article.
The Nihon Keizai Shimbun business daily said Isuzu would supply between 10,000 and 20,000 engines a year for use in Renault's luxury car, capitalising on its expertise in the use of aluminium parts to make the three-litre engines lighter and more efficient.
Automakers have been battling a 2005 deadline and high research and development costs to produce more eco-friendly diesel engines before Japan and Europe are expected to adopt stringent regulations on levels of carbon dioxide emissions.
The Renault Versatis will offer two types of engines, a 3.5 litre V-6 gasoline-fueled engine developed by Nissan Motor Co Ltd and the three-litre V-6 diesel engine, which it will get from another supplier.
Isuzu, known for its top-class diesel engines, also supplies three-litre diesel engines to Swedish automaker Saab Automobile AB and will offer a smaller engine to Honda Motor Co Ltd from the autumn, the newspaper said.
It also said Mazda Motor Corp planned to buy 20,000 diesel engines from parent company Ford Motor Co for use in its compact cars sold in Europe.
Isuzu climbed 1.55 percent to 196 yen by 0143 GMT, while the key Nikkei share average slipped 1.19 percent. Mazda fell 0.92 percent to 216 yen.