When it comes to diesel technology, Europe is king and all for good reason as diesel-powered models account for roughly half of all sales across the continent.

Therefore, it’s no wonder that General Motors tapped its European operations for the development of the diesel engine to be offered on the North American market Chevrolet Cruze sedan.

The Detroit automaker tells us that the new diesel unit is being developed by the powertrain engineers at GM’s diesel center of excellence in Torino, Italy, with the help of their counterparts in Pontiac, Michigan, while Opel’s engineers in Russelsheim, Germany, are also supporting the program by developing the accessory drive, acoustic cover and other specialized components.

GM has yet to provide us with specific information on the North American diesel unit, but chances are it will be based on one of the two engines to be offered on the updated, European market 2012 Cruze that will debut in Geneva next month.

These include the recently revised 2.0-liter four-cylinder with 161bhp (120kW / 163PS) and 360 Nm (265.5 lb-ft), and a brand new 130bhp 1.7-litre VCDi diesel engine, with start-stop technology and CO2 emissions of 119g/km.

Last year, GM as a whole sold half a million-diesel vehicles worldwide, including 33,000 Cruze models.

“The market for diesel cars in the U.S. is small at present, but is expected to grow due to Corporate Average Fuel Economy requirements and expected increases in gas prices,” said Mike Omotoso, powertrain analyst at LMC Automotive.

“So far, the German automakers haven’t had any diesel car competition in North America. GM could do well with it, particularly with younger buyers who don’t have the old prejudices against diesel.”

GM says it has high hopes for the diesel-powered Cruze model in the States.

“U.S. customers are going to be pleasantly surprised when they get a chance to drive the Chevrolet Cruze diesel,” said Mike Siegrist, 2.0L diesel assistant chief engineer.

“In terms of outward appearances, the difference between the diesel and gasoline engine is going to be difficult to discern. GM’s advanced technologies provide a seamless transition from a gasoline to a diesel car. You get the benefits of the fuel economy and power while preserving a smooth, quiet ride,” Siegrist added.

The Cruze Diesel will go on sale in the U.S. next year.

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