SAO PAULO, Brazil -- The board of directors of General Motors Brazil and MWM International Motores, an affiliate of Navistar Inc., have signed a strategic agreement to manufacture 420,000 units of a new diesel engine to serve GM’s new vehicle line to be launched by 2011. The engines will be supplied for GM in Brazil and the vehicles will also serve export markets.
The directors for both companies signed the seven-year engine supply contract at GM headquarters in Sao Caetano do Sul, Sao Paulo, Brazil. Considering the current conditions of the global vehicle market, both companies estimate that volumes can reach 60,000 units per year. This represents the largest contract between GM and a supplier in Brazil.
