Rest of Allis-Chalmers Unit Is Acquired by Fiat

Allis-Chalmers Corp. has sold its remaining share of a problem-plagued construction machinery venture to Fiat of Italy.

The sale price was not announced, but Allis-Chalmers’ investment in the joint venture, Fiatallis Construction Machinery, had been carried on its books at $10.7 million.

Allis-Chalmers had held 15% of the joint venture, which only recently reached profitability after years of losses.

The joint venture started out as an equal sharing between Allis-Chalmers and Fiat, but Allis-Chalmers’ share was reduced in 1981 to 15% when Fiat invested $76.9 million in the company.

Fiatallis reported operating losses of $170.6 million from 1981 through 1983. As a result of the losses, Allis-Chalmers’ original investment of $50 million was written down by $40 million in 1981 and 1982.