Fiat SpA (FP) To Buy GM’s Share In VM Motori
VM Motori is an Italian manufacturing company that builds the V6 diesel engines placed in the Jeep Grand Cherokee and Ram 1500. VM Motori is owned 50-50 between General Motors Company (NYSE:GM) and Fiat SpA (BIT:FP). GM bought half of the company in 2007 from Penske Corporation and Fiat bought the other 50% two years ago.
This past weekend, Fiat released a statement indicating that GM wants to sell Fiat their share of the diesel company.
“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,” said Fiat in a statement.
It is likely that GM will still source diesel engines from the Italy based company. This deal is expected to close by the end of the year.
[Source: The Truth About Cars]