Fiat is planning to take full control of VM Motori by buying out the half of the company that’s currently owned by joint venture partner General Motors. The Italian carmaker announced the intention to buy GM’s stake in the diesel engine manufacturer on Saturday.
Based in the northern Italian city of Cento, VM Motori is currently a 50:50 joint venture between Fiat and GM. The company supplies diesel engines for several car models, including the Jeep Wrangler and Grand Cherokee.
“GM’s notification to exercise its put option to sell to Fiat its 50 percent interest in VM Motori SpA is in line with the contracts Fiat entered into when it acquired a 50 percent stake in VM in 2010,” Fiat said in an emailed statement, according to Reuters
“The transaction’s satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals,” the statement added. Fiat did not reveal how much it will pay to acquire the other half of VM Motori.
In January 2011, VM Motori launched its latest engine, an all-new 3.0-liter V6 unit (pictured) available in two states of tune: 190 hp and 241 hp respectively. The latter develops its peak power at 4,000 rpm and 550 Nm (410 lb-ft) of torque between 1,800-2,800 rpm. The engine features Fiat’s MultiJet2 technology for improved performance and fuel economy.
The powerplant is featured in various Fiat and Chrysler vehicles, including the Jeep Grand Cherokee (both in Europe and the U.S.), Lancia Thema and Ram 1500 pickup truck, and it may also be introduced on the U.S.-market Chrysler 300.
By Dan Mihalascu
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