The Oliver 1250 came with either a Fiat four-cylinder diesel engine, which was naturally aspirated, or a Fiat four-cylinder gasoline engine. The diesel engine had a 21.5:1 compression ratio, while the gasoline engine's compression ratio was 7.5:1. Both used a liquid coolant. The diesel engine had a 138 cubic-inch displacement. Engine displacement for the gasoline engine was 116 cubic-inches. The diesel engine bore (cylinder diameter) was 3.31 inches, and the engine stroke (total length the pistons can move within the cylinder) was 4 inches. The gasoline engine bore was 3.25 inches, and the engine stroke was 3.5 inches.
The 1965 Oliver 1250 tractor had a three-point hitch, and it used two 12-volt batteries. The starter took 24 volts. The tractor used a generator with a negative ground electrical system. The 4-by-2 two-wheel drive tractor had a transmission that included six forward and two reverse gears.
The power take-off system is responsible for lifting the tractors attachments; the PTO for the Oliver 1250 was located in the rear. The live, two-stage clutch rear PTO produced 540 rpm. The PTO in the gasoline engine tractor produced up to 35 horsepower, while the PTO in the diesel engine produced up to 38.5 horsepower.
Oliver/White Motor Corporation was the distributor for this tractor. According to TractorData.com, however, the tractor was manufactured by Fiat, an Italian automobile company. TractorData.com indicates that the Oliver 1250 was similar to the Fiat 415 tractor, which was produced from 1965 to 1968.