By Giulio Piovaccari
MILAN (Reuters) -Carmaker Stellantis agreed on Wednesday to sell its Italian VM Motori engine making unit to a group of Italian investors who also control engine part maker Marval.
The transaction, for which no financial details were provided, is part of a wider Stellantis effort to reorganise its operations as the auto industry moves towards electrification, while contracting market demand in Europe reduces the need of traditional petrol engines.
The binding deal with Stellantis was signed by Gamma Holding, a vehicle created by Marval’s controlling investors, Marval’s CEO Vincenzo Nunziata said.
VM Motori, which employs over 350 people in its north Italian facility of Cento, historically made engines for Fiat Chrysler, now part of Stellantis, including large 6-cylinder diesel ones for markets like the U.S. But since 2022 it has been focusing on industrial and marine engines, after stopping serving the car industry.
A spokesman for Stellantis confirmed the completion of the transaction with the shareholders of Marval, aimed at promoting “the creation of a national centre of excellence in the field of industrial engine technology”.
Turin-based Marval is backed by Azzurra Capital private equity fund.
The deal is expected to be finalised by the end of this year, Marval’s Nunziata said.
Stellantis operates two other engine making plants in southern Italy, in Termoli and Pratola Serra, supplying automotive production.
Nunziata said buyers would keep jobs and current production at VM Motori, with the aim of expanding Marval, which currently specialises in key parts for engines and transmissions used in agricultural machinery, earthmoving equipment, commercial vehicles and trucks, as well as sports cars.
Marval employees some 800 people in its facilities in Italy, Britain and China. Its customers include John Deere, Daimler Truck, Iveco, Scania, China’s BYD and Sany.
“We aim to continue VM’s industrial development,” Nunziata said. “Our project focuses on the industrial continuity of the site and the enhancement of local skills, increasing the design, production and supply chain assets that have always distinguished this company.”
Marval posted revenues of 160 million euros ($187 million) in 2024. ($1 = 0.8548 euros)
(Reporting by Giulio PiovaccariEditing by Keith Weir)
