Fiat plans to take full control of VM Motori diesel engine manufacturer by purchasing the half of the company owned by GM.
“The transaction’s satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals,” said Fiat.
Diesel engine manufacturer VM Motori is based in the city of Cento, Italy, and is a 50:50 joint venture between Fiat and GM. The facility provides engines for various vehicle models, among which the Jeep Grand Cherokee and the Jeep Wrangler.
“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.
On another matter Fiat announced its plans to build five new models in the next two years, part of its strategy to return to profitability in the Middle East, Europe and Africa by 2015. Alfredo Altavilla, the group’s head of the EMEA region, said that the new models will include four models of the 500 family and a new Panda Version.
Analysts predict that the recovery process of the auto market in Europe will be a long and slow one, as unemployment is still at record high levels.