Fiat will get full ownership of Polish diesel engine plant from GM

Article by Christian Andrei, on August 27, 2010

Fiat S.p.A.'s powertrain division will take full ownership of a joint Fiat-General Motors Co. manufacturing venture that builds diesel engines in Poland.

The factory is called Fiat-GM Powertrain Polska and is located in Bielsko-Biala about 350km south of Warsaw. Having full control will mean that Fiat will be able to make better use of this factory's capacity. 

One of Fiat's plans for the plant is to start building a two-cylinder 900cc gasoline engine, which will debut later this year on the Fiat 500 minicar.

GM said that without management control of the joint venture, it doesn't think it necessary to maintain a shareholding in the manufacturing operation.

On Jan. 27, Fiat and GM Europe said that they have signed a preliminary share transfer agreement for Fiat Powertrain Technologies to acquire GM's 50% share in the venture.

Fiat Powertrain Technologies will be managing the factory, which will continue to produce 1.3-liter diesel engines for Fiat and GM.

This engine is made for Opel/Vauxhall models including the top-selling Astra and Corsa cars as well as the Meriva and Agila minivans.

Topics: fiat, diesel, engine, poland, gm

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