Fiat buys Chrysler powertrain plant in Brazil
Ryan Beene
Automotive News
March 12, 2008 - 2:30 pm ET
UPDATED: 3/12/08 3:55 p.m. EDT
Chrysler LLC said today it sold its Brazil engine plant, Tritec Motors Ltda., to Fiat Powertrain Technologies.
Fiat purchased 314 acres, production lines, equipment and licenses to produce the plant's current range of 1.4- and 1.6-liter four-cylinder engines.
Fiat said the plant would produce a new range of mid-sized gasoline and flex-fuel engines, according to a Reuters report.
" Today's announcement is great news and provides a stable future for Tritec under the ownership of Fiat Powertrain Technologies," Chrysler co-President Tom LaSorda said in a statement.
The deal was valued at about $127.5 million, according to a Reuters report. Chrysler spokeswoman Mary Beth Halprin declined to confirm the sale price, saying Chrysler does not typically disclose financial details as a private company.
The plant was built in 1999 through a 50-50 joint venture between the former DaimlerChrysler and BMW AG established in 1996.
The engines were supplied to the BMW Mini car from its European introduction in 2001 and U.S. launch in 2002 until it was replaced for the 2007 model year by an engine developed by BMW and PSA/Peugeot-Citroen.
Tritec engines also were used in the Chrysler PT Cruiser sold in South Africa and Europe and Neon models sold outside North America.
DaimlerChrysler assumed outright ownership of the project when it bought BMW's 50 percent share of the joint venture in July 2007. By that point, press reports indicated that Lifan, a low-volume Chinese automaker, and Russia's AvtoVAZ were thinking about buying the plant.