Fiat, the Italian carmaker, had laid out plans to takeover VM Motori, the Italian diesel engine manufacturer. Fiat bought out half of the company owned by its joint venture partner General Motors.
The said buyout was confirmed by a communique from Fiat. VM Motori is a 50-50 joint venture between Fiat and GM. Its main base of operations are in the italian city of Cento. The plant manufactures engines for various models, such as the Jeep Wrangler and Jeep Grand Cherokee. There was no mention of the financial details of the buyout.
In the statement, Fiat said, "GM's notification to exercise its option to sell Fiat its 50% interest in VM Motori SpA is in line with the contracts Fiat entered into when it acquired a 50% stake in VM in 2010."
It added, "The transaction's satisfactory conclusion is expected before year-end and is conditional upon the requisite regulatory approvals."
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