#gema

Fiat’s plan to gobble up all of Chrysler has taken its first step forward since the Italian automaker rescued the struggling America manufacturer from bankruptcy liquidation. Currently Fiat owns 20 percent of Chrysler and has the ability to take a 35 percent share of the company if it meets three specific criteria: building a fuel-efficient engine in the United States, building a 40-mpg car in the U.S. and expanding Chrysler’s reach internationally. Once those goals have been achieved, it can also purchase up to 51 percent of Chrysler.

In a brief statement, Chrysler has announced that the Global Engine Manufacturing Alliance (GEMA) is now entirely owned by the U.S. automaker, with both former partners, Mitsubishi and Hyundai, having sold their parts of the company.

This may sound like a dull bit of business news, but it could most certainly have a big impact on some of the coolest engines on the planet. Sure, the engines that originated from GEMA have found there way into less exciting vehicles like the Chrysler Sebring, but the same engines have also been the backbone of cars like the Mitsubishi Lancer Evolution (pictured above) and Hyundai Genesis Coupe 2.oT. The high-powered Caliber SRT4 also used a version of a GEMA engine.

Three basic engines have come out of GEMA with displacements of 1.8, 2.0 and 2.4-liters, many of which were fitted with turbochargers and superchargers to make as much as 300hp.

There is no word if the end of the GEMA partnership could affect future Hyundai and Mitsubishi powertrain developments, but you can be sure the decision had a lot to do with Chrysler’s new Fiat ownership.

Official release after the jump: