P.M. BRIEFING : GM to Combine 2 Engine Units

General Motors Corp., which has been racing to cut costs more quickly than it loses sales in the slumping U.S. auto industry, said today it will consolidate its two engine operations in a newly formed GM Engine Division.

GM, the world’s largest auto maker, said the new division “will improve our ability to bring products more quickly to the marketplace.”

GM President Robert Stempel said Richard Donnelley, formerly a GM product manager, will serve as general manager of the division, which will include engine operations at the Chevrolet-Pontiac-GM of Canada and Buick-

Oldsmobile-Cadillac groups.

The two engine divisions employ 20,000 people and make 19 different engines.

Formation of the division represents a continuing evolution of a 1984 reorganization in which five engine groups were merged into two, Stempel said.

GM has been losing market share over the last decade as sales were stolen by archrival Ford Motor Co., Chrysler Corp. and, most of all, by Japanese car makers.