General Motors (GM) and Fiat have announced plans to invest in the development of more diesel powered vehicles in a bid to halt falling sales.

The companies are reacting to the increasing demand from consumers to buy diesel-powered vehicles, due to their improved environmental benefits and the fact that the running costs are less affected by oil prices than gasoline-powered cars.

Sources have told Automotive News that production of the 1.3 litre diesel engine will be increased by 45 per cent over the years to come as demand for diesel vehicles grows and companies come under increasing pressure to reduce emissions in their fleets.

Suzuki already uses the engine in three of its European models and its Indian subsidiary, Maruti Udyog, is building the engine under licence in New Delhi.

Despite worldwide car sales having picked up somewhat in the last month, US car giants including GM and Ford have struggled to compete with the newer technologies in the market such as clean diesel and hybrids.


Ÿ Adfero Ltd