The American auto giant will sell its 50% share of VM Motori to its partner in the company, Italy’s Fiat (FIATY). GM acquired the stake in VM Motori, which produces diesel engines, in 2010, Reuters notes.
Regulators must approve the deal, which is anticipated to close before the end of the year. Financial terms of the transaction were not disclosed.
Fiat said that GM decision to sell its stake “in line” with the joint venture’s original agreement.
VM Motori builds the engines found in Chrysler’s Jeep Grand Cherokee and Jeep Wrangler.
Shares of General Motors sank slightly in Monday morning trading, while Fiat climbed more than 1% in over-the-counter trading.