Fiat Plans to Take Full Control of VM Motori

Fiat Plans to Take Full Control of VM Motori

Fiat plans to purchase the remaining half of VM Motori, an Italian engine manufacturer whose ownership is currently split in half between General Motors and Fiat.

That would give the Italian automaker full control of VM Motori, which manufactures diesel engines being used in various Jeep and Ram models. VM Motori was initially a 50-50 joint venture between Fiat and GM to develop diesel powerplants for the automakers.

SEE ALSO: GM Ready to Jump in if Diesel Half-Tons Take Off

The buyout is contingent on regulatory approvals but will happen before the year’s end if it’s approved. And despite the buyout, GM will still have access to VM Motori’s 3.0-liter diesel which the American automaker is considering using in the new 2014 Chevrolet Silverado pickups, depending on the success of half-ton diesels.

“GM’s notification to exercise its put option to sell to Fiat its 50 percent interest in VM Motori is in line with the contracts Fiat entered into when it acquired a 50 percent stake in VM in 2010,” Fiat said in a statement.

[Source: Automotive News]

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