Fiat and GM Sign Separation Agreement
Amsterdam, Detroit, Turin -
Fiat S.p.A. and General Motors Corp signed in Amsterdam a separation
agreement which dissolves the purchasing and powertrain joint venture
companies formed in 2000. The formal unwinding of Fiat-GM Powertrain and
GM-Fiat Worldwide Purchasing was executed as scheduled by Fiat and GM in
an earlier agreement.
According to the Termination
Agreement, signed in New York City on February 13th, 2005, GM has
completed the payment to Fiat as provided in the earlier agreement.
Fiat and GM regain ownership
of all assets they respectively contributed to the powertrain joint
venture when it was formed.
Fiat and GM have also signed
cross-supply agreements for engines and transmissions both in Europe and
Latin America. The companies also agreed to establish procedures aimed at
enhancing the savings on jointly developed vehicle architectures.
Other ancillary agreements
address the joint ownership of intellectual property, for example, the
joint ownership of 1.9 liter diesel engine technology. Fiat and GM each
maintain a 50 percent interest in the powertrain manufacturing plant in
Bielsko-Biala, Poland, which currently produces the 1.3 diesel engine and
under a new joint venture agreement the companies will continue to operate
the facility as a 50/50 joint venture.
(May 13, 2005)