FRANTFURT, Germany - Italy's Fiat Group SpA is reportedly close to an agreement to take a majority stake in General Motors Corp.'s European business. Citing unidentified sources, the online version of Germany's Der Spiegel magazine says Fiat was expected to sign a declaration of intent next Tuesday. Fiat, in the meantime, is already in talks to take a minority 20 per cent stake in Chrysler in exchange for small car and other technology. Fiat close to deal to take majority stake in GM's European business; report - Canadian Press Automotive News - Sympatico / MSN Autos I assume they meant Frankfurt... lol
<Shrug>. I'm just surprised that it was the FIAT group that wanted to buy an American company. There's Volvo Cars but I think Ford's price for Volvo Cars is a bit steep. Heck, Volvo Group didn't want Volvo Cars back lol.
It's surprising Fiat has never been much involved in the US market. They are very big in Europe with low cost compact cars. They could compete with the Japanese here in compacts. The Europeans have always been big on gas mileage.
Won't that be wonderful? With Fiat's reputation for reliability GMs products will fit right into their line-up.
They are involved indirectly. The Fiat Automotive Group consists of: FIAT Alfa Rameo Ferrari Maserati Lancia 3 of the 5 are sold in the US. Opel is a Germany brand, manufactured in Europe that happens to have a American owner at the moment. I have no doubt Fiat would like to have Opel to get a bigger chunk of Germany's market, the largest in Europe. (FIAT is strong in southern Europe, Opel in Germany and the UK) The funny thing is that GM bought a stake in Fiat in 2000 with the option to buy the whole company. Fiat tried to force GM to exercise that option in 2005 but GM backed out and paid Fiat $2 billion to get out of the contract and take back the stake owned by GM. Now 4 short years later Fiat is buying parts of GM and Chrysler.
They are most uncompetative with Japanese imports here in Australia. from 2007 but the ratios would be close to this still. http://www.caradvice.com.au/1740/february-sales-statistics/
Fiat goes on buying spree, snatching up automakers around the globe. Fiat on track to become "global auto powerhouse." http://finance.yahoo.com/news/Fiat-...91.html?sec=topStories&pos=main&asset=&ccode= . . .
