The engine is designed with cylinder heads that eliminate the exhaust and intake manifolds. The castings of the journals of the crankshaft bearing and oil circulation set up are also especially engineered.

This engine with a very lightweight block is due under the hood of the next generation Chevrolet Silverado and GMC Sierra. If the production of the engine would have pushed through next fall, these vehicles would have been more fuel efficient.

The move to delay the production of the engine in Tonawanda New York is just one of the desperate moves of the autoworld giant to stay afloat amid the rough hits of the financial crisis. GM has been trying to sell off some assets, get rid of some brands to create a miracle after four years of being non-profitable.

GM was able to secure several patents in connection with the development of the efficient diesel engine and early test runs have shown promising performance compared to a gasoline engine.

Executives of the company commented that they are looking into a possible joint venture to produce the engine for GM. It may take at least a year though before production can kick off in case GM decides to revive the program.

GM will continue to offer the 6.6L Duramax to keep its presence in the diesel truck field. They are also offering the hybrid versions of the Sierra and Silverado.

In February, GM dropped the plan of constructing a plant for the assembly of the Volt engine. The engines will come initially from a European factory while their Flint, Michigan plant is reorganized for the production.