Fiat Group, Chrysler Group's Italian parent company, has acquired the remaining half of VM Motori S.p.A. from General Motors for 34.1 million euros ($47.1 million).
The acquisition, which gives Fiat complete ownership of the European diesel engine manufacturer, was completed today, a Chrysler spokesman said.
Fiat purchased half of VM Motori in 2010. GM exercised a put option allowed under its agreement with Fiat to complete the sale.
VM Motori supplies diesel engines for various car models, including the Ram 1500 and Jeep Grand Cherokee in the United States. Established in 1947, VM Motori also supplies advanced diesel engines for marine, industrial and other uses.
The diesel Grand Cherokee went on sale in the United States this fall, while a diesel Ram 1500 is expected to hit showrooms after the first of the year. Chrysler executives have said that they plan to gauge consumer interest in these vehicles to decide whether to expand diesel engines to other vehicles in its lineup.
VM Motori's plant Cento, Italy, covers 85,000 square meters and employs approximately 1,150 people. It produces about 90,000 engines per year.