Fiat Powertrain Technologies is buying Penske Corp.’s 50-percent share of VM Motori, a diesel engine manufacturing operation. The deal sets up the Chrysler Corp. parent and General Motors Corp. as equal partners in the Italian engine builder.
The terms of the deal have not been released. According to Fiat and GM, the sale is still subject to anti-trust review.
VM Motori has had several owners over the past decade, starting with Detroit Diesel and its subsequent parent DaimlerChrysler AG. DaimlerChrysler sold the engine maker to Penske, which sold 50% to GM in 2007, with plans to co-develop a 2.9-litre V-6 turbo diesel engine.
VM Motori diesel engines are licensed and supplied to numerous automakers, including Chrysler and Jeep, as well as to commercial and off-highway vehicle manufacturers around the world.