Daimler, Fiat Set Engine Technology Pact

Europe-based vehicle makers DaimlerChrysler and Fiat have signed an agreement calling for strategic cooperation to provide Daimler’s truck group with engine and powertrain technology from Fiat, the Associated Press reported.

The first step of this agreement will be the long-term supply of light-duty diesel engines to the Mitsubishi Fuso Bus & Truck Corp. for use in major markets, including Europe and Japan, the two said in a joint statement.

Under the agreement, Italy-based Fiat will supply 80,000 engines to Germany-based DaimlerChrysler’s Mitsubishi Fuso unit starting in 2009, AP reported.

DaimlerChrysler Chief Executive Officer Dieter Zetsche said the decision was part of a wider effort to provide vehicles with light diesel engines that would be in line with future emission regulations.

Current and future emission regulations demand a high level of investment and technological specialization, he said, AP reported.

DaimlerChrysler is the parent company of Freightliner LLC, which includes U.S. Class 8 truck makers Freightliner, Sterling and Western Star.