by Christopher Freeburn | September 23, 2013 10:19 am
General Motors (GM) is exercising an option to sell its stake in a European joint venture.
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.
In July, it was reported that General Motors would expand its existing partnership with France’s Peugeot (PEUGY) and could begin marketing Peugeot commercial vans in the U.S.
Shares of General Motors sank slightly in Monday morning trading, while Fiat climbed more than 1% in over-the-counter trading.
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