Punch Group has acquired GM’s propulsion engineering centre in Turin.
The transaction between the two companies includes an engineering services agreement to support GM’s global product programmes to the end of 2021.
GM says the agreement ensures the viability of the engineering centre and employment of its workforce. Punch Group plans to reposition the company with developments for new market segments while continuing to provide engineering services to GM.
Since 2005, Turin has served as a global centre for diesel propulsion systems and electronics for GM.
“This addition to our global portfolio will help the Punch Group execute our vision to be the leading integrator and manufacturer of driveline solutions,” said Punch Group founder and CEO, Guido Dumarey.
“The focus of this business will be to deliver engineering services to GM and new clients. This includes developing engine applications for new segments, supporting the manufacturing of engines and providing both engine and transmission solutions in markets worldwide.”
For GM, the agreement is intended to ensure the continuity of engineering services on key GM programmes, as the company continues to transform and consolidate its global engineering organisation.
“We wanted the best solution for our employees and our company – the transfer of ownership to Punch Group in addition to an engineering services agreement, does just that,” added GM EVP, Doug Parks.
“The work will continue to support our global operations and allow us to focus our internal efforts on long-term solutions.”
Employees of GM Turin are now employees of Punch Group.