Fiat SpA is due to become the sole owner of VM Motori, a diesel engine manufacturer, having agreed to buy out its co-owner General Motors Corp. The value of GM’s 50% stake has not been reported.
"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," according to a Fiat statement.
General Motors has not commented on the intended sale.
VM Motori, is headquartered at Cento, Italy, and has been co-owned by Fiat and GM since 2011.
VM Motori produces a long list of diesel engines of different styles and configurations, supplying them to numerous automotive OEMs. Among its current customers is Fiat’s Chrysler Corp., which installs a VM Motori-built 3.0-liter V6 diesel engine for the Jeep Grand Cherokee crossover vehicle and Dodge Ram 1500 pickup. Those engines are built from compacted graphite iron engine blocks cast by Tupy SA.
Another buyer of VM Motori engines Chevrolet, which offers a 2.0-liter turbo-diesel engine in the Chevy Cruze.
The company also produces various marine, industrial, and power-generation engines.
"The transaction's satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals," Fiat stated.