Fiat to buy out General Motors in VM Motori JV

Italian carmaker Fiat over the weekend said that it will take full control of the diesel engine manufacturing joint venture VM Motori S.p.A. by buying out its partner General Motors (GM).

VM Motori is a 50:50 diesel engine manufacturing venture between Fiat and GM based in Cento, which is also home to Ferrari, Lamborghini, Maserati, Pagani and Ducati.

Turin-based Fiat did not reveal the financial terms of the deal.

"GM's notification to exercise its option to sell 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," said Fiat in a statement.

"The transaction's satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals," it added,

The plant manufactures engines for various models, including the Jeep Wrangler, the 2012 Lancia Thema and Jeep Grand Cherokee.