A GM division and Deere may form a joint venture.

The Detroit Diesel Allison division of General Motors and Deere & Co. said they have signed a letter of intent under which the two organizations will study the feasibility of forming a joint venture in the diesel engine business. Deere builds a line of diesel engines for agricultural, construction, marine and industrial uses. DDA produces light-, medium- and heavy-duty diesel engines for automotive, industrial, construction and marine applications. The two firms said they intend to implement a distribution agreement that would permit each company to distribute selected diesel engine products made by the other.