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