GM, Isuzu May Share Engines, Platforms in India

General Motors Co. and Isuzu Motors Ltd. are in negotiations about sharing engines, vehicle platforms and perhaps entire models in India, sources tell The Economic Times.

The scheme is intended to help GM quickly expand its product porfolio and improve its meager sales in India, according to the Mumbai-based newspaper. It reports GM sales in the country dwindled by nearly 50% over the past four years to about 50,000 units.

ET’s sources say GM is particularly interested in sourcing Isuzu diesels that can meet India’s Stage IV emission standards after 2017. They say the U.S. company also may seek to market a rebadged version of an Isuzu’s upcoming MPV, code named RU30, by 2018.

GM is completely overhauling its Indian strategy with new management and a likely shift away from some of the company’s aging Chinese platforms, according to the sources. They add that GM is likely to sell its factory in Gujarat and centralize production in the near term at its plant in Talegaon.

ET describes a possible deal with Isuzu as an interim plan to to bolster GM’s current lineup in India. It says new models based on the company’s new emerging-markets platform are expected to debut in 2018-2019.