Belgium’s Punch Group has agreed to acquire the General Motors Co. propulsion engineering center in Turin, Italy, for an undisclosed amount. The transaction includes an engineering services agreement to support GM’s global product programs through the end of 2021.
The agreement ensures the ongoing viability of the engineering center 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.
Turin has served as a global center for diesel propulsion systems and electronics for GM since 2005.
“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,” says Doug Parks, executive vice president of GM. “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 now are employees of Punch Group and will continue to support future GM programs. The two companies will continue to work together to ensure a smooth transition from GM to Punch Group.
“This addition to our global portfolio will help the Punch Group execute our vision to be the leading integrator and manufacturer of driveline solutions,” says Guido Dumarey, founder and CEO of Punch Group. “The focus of this business will be to deliver world-class 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.”