Report: Fiat Buying Out GM's Share of VM Motori Diesel Joint Venture

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VM Motori, the 50/50 joint venture diesel engine manufacturer co-owned by Fiat and General Motors, will soon be fully-owned by Fiat, based on a report from Reuters, citing a release from Fiat. VM Motori is the manufacturer that builds the well-received 3.0-liter turbodiesel V-6 used in the 2014 Jeep Grand Cherokee and Ram 1500 EcoDiesel models.

According to the report, the impetus to give Fiat full control of the joint venture may have been initated by GM, as a statement released by Fiat said, "GM's notification to exercise its put option to sell to Fiat its 50 percent interest in VM Motori SpA is inline with the contracts Fiat entered into when it acquired a 50-percent stake in VM in 2010."

In addition to the well-received 3.0-liter EcoDiesel V-6 offered in the Grand Cherokee and 2014 Ram 1500, VM Motori also manufactured the 2.8-liter I-4 diesel briefly offered in the Jeep Liberty in the U.S. and still offered in the overseas versions of the Jeep Wrangler.

Although this deal decreases the likelihood of GM using VM Motori diesels in its future models, it doesn't completely prevent it, as the Detroit Three have a history of sharing resources in powertrain development, the most recent example being GM and Ford's announcement of collaboration on nine and 10-speed transmissions, after a successful collaboration on six-speed automatic transmissions for transverse applications.

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