Fiat To Buy GM's 50% Share of Diesel Engine Maker VM Motori For Full Ownership

by TTAC Staff

Updated: February 18th, 2014

fiat to buy gm s 50 share of diesel engine maker vm motori for full ownership

Ownership of VM Motori, the Italian maker of the V6 diesel engines offered in the Jeep Grand Cherokee and Ram 1500, is currently split 50/50 between General Motors and Fiat. But according to Automotive News, Fiat is looking to buy the other 50 percent, completing its ownership stake.

GM bought half of the company in 2007 from Penske Corp. and Fiat bought the other half two years ago. Over the weekend, Fiat released a statement indicating that GM now wants to sell Fiat it’s share of the diesel manufacturer, “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.” Though GM is relinquishing their stake in VM Motori, it’s still possible that they may source diesel engines from the Cento, Italy company. Fiat controls Chrysler and the Detroit automakers have a recent history of collaboration, as in Ford and GM developing transmission together. The deal on VM Motori is expected to close by the end of the year.

#Diesel #Fiat #GeneralMotors #GM #VmMotori

TTAC Staff

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10 of 18 comments

Bobman on Sep 23, 2013

I couldn't find any comments from Fiat aside from the acknowledgement that GM had initiated it. However, I seem to recall that GM used very little, if anything, of the output from VM. They won't be missed. The requirements from Fiat and Chrysler should easily use up the capacity.

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- AMC_CJ on Sep 24, 2013
  
  Yes they did, overseas. The EU GM cars used VM-Motori diesels, and the Cruz diesel, along with the Colorado, is suppose to be too, if they're still coming this way.
  
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Igve2shtz on Sep 23, 2013

This is interesting. Just the other day, someone (can't remember the website or magazine) asked a GM exec if they would ever put a diesel in the Silverado 1500, which he relied that GM was waiting to see how RAM 1500 does first. The presumption was that GM would use the 3.0 V6 Diesel from VM. Although this TTAC article still mentions collobaration, I imagine it makes GM less likely to do so. Oh well.

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- Onus on Sep 23, 2013
  
  GM had an engine designed before the 4.5 duramax. I doubt they just throw away all the information to build it. Probably just in storage somewhere.
  
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- Brian P on Sep 23, 2013
  
  @Onus This would have been several years ago. The problem is that with advancements in emission control regulations and technology, what you had almost ready for production a few years ago might be of little value today.
  
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- Scoutdude on Sep 23, 2013
  
  @Brian P No the basics of diesel engine design haven't changed the current emissions controls are add-ons and recalibration of software. Yes they would have to do some engineering to meet current emissions standards but that doesn't mean they can't use the basic engine design.
  
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Wmba on Sep 23, 2013

The Cruze diesel four is made by Fiat. It lacks Multijet II technology, which the 3.0 V6 co-developed by Fiat and VM Motori does have. Cruze diesel facts: http://www.roadandtrack.com/car-shows/chicago-auto-show/news-fiat-factoid-about-2014-chevy-cruze-diesel

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Les on Sep 24, 2013

I have to wonder if this won't impact Chrysler's relationship with Cummins, which spent a lot of time and capital turning Cummins into a household name and reaping dividends in the HD truck market with it.. and Cummins does produce Euro-spec road-legal engines in 2.5 and 3.8 Liter displacement.

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- Erikstrawn on Sep 24, 2013
  
  I think that relationship isn't as strong as it used to be. http://www.autoblog.com/2013/08/20/nissan-titan-turbo-diesel-v8-cummins/
  
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- Les on Sep 24, 2013
  
  @Erikstrawn Yeah, that's another thing that has me worried.. and adding more fuel to the fires of 'Sergio Marccione doesn't 'Grok' American car brands or branding and is going to ruin Chrysler' hate that gets bandied about. Fiat is a major competitor with Cummins in the global commercial diesel-engine market, except in the US. In the US while they still do some Commercial-grade sales they're most known for the Dodge Ram Cummins partnership, Chrysler-as-it-once-was put a lot of effort into making 'Cummins' mean for Diesel what 'Hemi' meant for V-8 gasoline engines, even non-enthusiasts know of and covet those engines. Any other manufacturer who had an 'I Win' button for sales of heavy duty diesels in the form of badging from what consumers consider a desirable supplier (I know I overstate it, it's called hyperbole) would've looked at the growing interest in light-duty diesel and gone to that supplier and asked if they maybe, kinda, sorta could help out a bit there. Fiat however seems to be doing anything but that, perhaps out of a misguided attempt at minimizing entanglements with a competitor to their other divisions.
  
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