Fiat is planning to take full control of diesel engine manufacturer VM Motori by buying out the half of the company owned by joint venture partner General Motors, the automaker said at the weekend.
VM Motori, based in the northern Italian city of Cento, is currently a 50/50 JV between Fiat and GM, Reuters reported.
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The plant supplies engines for various vehicle models including Chrysler’s Jeep Wrangler and Grand Cherokee.
“GM’s notification to exercise its put option to sell to Fiat its 50% interest in VM Motori SpA is in line with the contracts Fiat entered into when it acquired a 50% stake in VM in 2010,” Fiat said in a statement emailed to Reuters.
“The transaction’s satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals.”
The company did not give a value for the deal, the news agency report noted.
