• Apr 21st 2009 at 1:29PM
  • 31

Forget about letting the ink dry: even while negotiations have been ongoing between Fiat and Chrysler, there have been rumors of potential additional or alternative alliances which the Italian auto group has purportedly been considering. Things may have been put on hold with Chinese automaker Chery and with Nissan, but talks about a tie-in with BMW are afoot, as were rumors of a merger with French auto group PSA Peugeot-Citroen, to say nothing of Fiat's role in Tata's acquisition of Jaguar and Land Rover. Recent reports, however, suggest that Fiat may be in the position to take over part of General Motors' organization in Europe and Latin America.

The arrangement would see Fiat take control of Opel and Vauxhall, which are slated to be spun off into a separate unit. The deal would not include Saab or Chevrolet's European operations (which are essentially Bowtie-badged Daewoos), but would include its operations in Latin America. The reports suggest the GM deal would be in addition to Fiat's arrangement with Chrysler. All told, between Fiat, Chrysler and GM's Latin American and European sales, the new group would form the second largest automaker in the world, with sales (based on current levels) coming in behind Toyota's.

With Fiat particularly strong in those two core markets, the deal could make sense, but it would hardly be the first time Fiat and GM were in bed together. Back in 2000, the two automakers brokered a deal to collaborate, which cost GM over $2 billion, and then cost it another $2 billion to get out of again in 2005 when Fiat got back on its feet. For his part, Fiat chairman Luca di Montezemolo has denied the reports, but CEO Sergio Marchionne may have some plans of his own.

[Source: Automotive News Europe - subs. req'd]

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    • 1 Second Ago
      • 6 Years Ago
      Remember the prediction: Six major automotive manufacturers on the planet. Consolidation has begun.
        • 6 Years Ago
        The consolidation theory was disproven a long time ago.

        The rule of game is engineering, production efficiency, and margin, not volume.
        • 6 Years Ago
        Hardly. With so many manufacturers on the brink of bankruptcy, it's only a matter of time before they take the plunge and their assets get purchased. Consolidation. Say it with me.
      • 6 Years Ago
      I doubt the Latin America part is true. Why would GM sell it? It makes money for them, and Chevrolet dealers in those countries sell both the rebadged Daewoo and brazilian made Opel, so it could be a little messy for GM to sell.
      • 6 Years Ago
      Wow, it's like FIAT is assembling all the Destructicons in preparation for forming Devastator.
      • 6 Years Ago
      Another deal between Fiat and GM will never happen.
      • 6 Years Ago
      The deconstruction of U.S. companies has begun. Anyone else see what is going on?

      Cloward Piven Strategy.

      In the end, there wil be no American owned companies - all will be muti-national gloabal corporations.

      GM without Opel will become meaningless, left to die. Chrysler too will die or become meaningless in this new global new world order. Only mega-international companies will be able to play ball - and navigate the expensive and complcated regulations and laws. Even GM will be too small to compete.

      Bye U.S.A..

      All bow to King Obama!
      And on the 6th day, he took over the auto industry.

      • 6 Years Ago
      Fiat is going to get paid to keep Chrysler and Opel running while Fiat gets the technology and some platform sharing accomplished. When Chrysler and Opel sort things out, they will then eventually emerge as separate entities. Fiat will be the keeper of the two for a while. Not bad for a middle man company. Let see if more car manufacturers join the fun. Do I hear Saab?
      • 6 Years Ago
      The mind boggles. We could be seeing what used to be Saturns and Pontiacs emerging as Chrysler and Dodge Sedans in the future.....
        • 6 Years Ago
        Funny, GM starts investing in Fiat, backs out. Winds up giving Fiat 2 billion to get out of the deal, now Fiat looking to invest in GM.......

        How long before both collapse?
        • 6 Years Ago
        Fiat is a well run company, they are pretty diverse too. They make less than half of their money on cars, the rest are farm equipment, trucks, engines and license fees related to their diesel technology.
      • 6 Years Ago
      GM would be better off getting Opel reorganized by a seling a 20% to Opel dealers (financing via Deutsche Bank who will have the shares as collateral) and 15% to the German State of wherever Opel is headquartered (similarly to the Lower Saxony State holding shares in VW).

      The other 16% would be floated in the Deutsche Boerse and GM would hold a 49% ownership. All proceeds would be given back to Opel to increase their share position and the whole deal would be based on a unions accepting some job losses, a plant or two closing and wage concessions. An additional 10% of the shares could be given to the unions as a bonus for going along (taking down GM to a 39% stake).

      Collaboration and cross-sharing of platforms, engines and patents would continue.
      • 6 Years Ago
      Hope GM will retain Opel.
      • 6 Years Ago
      This one seems hard to imagine. I don't see the synergies between Fiat and Opel. They are both heavily centred on the Euro market and Opel is worth good money where Chrysler is available for nothing. Chrysleriat makes more sense since it gives Fiat a toe hold in a new market. Adding Opel would be a mistake. There is just only so much a little company like Fiat can gobble up at one time. The logistics of merging their operations with Chrysler will keep them busy for awhile.
        • 6 Years Ago
        The Fiat Group is hardly a 'little company'. They are a massive international industrial conglomerate of which cars are only a small part.
        • 6 Years Ago
        Merger? What merger. Fiat is getting a free piece of Chrysler... and not giving any shares in return.
      • 6 Years Ago
      Fiat doesn´t have enough money to buy Opel even if they get some percentage for free.

      Opel needs an investor with money and Fiat can´t help here.

      And i agree everyday new rumors about merger. Most of them are still myth and i don´t see a reason why this one should be something else.
        • 6 Years Ago
        Well, you're wrong, because those that was the situation as at 31/12/08 and those figures had barely changed within the previous two years, as one would expect from a company with relatively modest growth during that time.

        You do realise that if Fiat - or any company of its girth - managed to lose 75% of its capital in just three months, all living h*ll would break loose don't you?

        Instead of being "fairly sure", try using some facts.
        • 6 Years Ago
        "Fiat doesn´t have enough money to buy Opel even if they get some percentage for free"

        Really? What sum does Fiat need, how much does it have, how much will in finance via loans and debentures?
        • 6 Years Ago
        Well we are talking with outdated numbers.
        I´m pretty sure that current money values are much lower than end of 08.
        Anyway, the european market is too overcrowded with cars in the segements Fiat and Opel offers here.

        Fiat need to expand worldwide means US and asia and southamerica?.

        So a Fiat Chrysler alliance makes much more sense than Fiat Opel.

        Just my 2 cents
        • 6 Years Ago
        Well GM claims that a new investor would need only 500 millions to get Opel but few weeks ago Opel said that they need up to 4 billions.

        Fiat had 3.9 billion capital at the end of 2008 and i don´t think that they would invest all of it into a merger with Opel.

        There are also competotors in the same segments so there is zero synergy in a merger.
        • 6 Years Ago
        "Fiat need to expand worldwide means US and asia and southamerica?"

        Fiat have been building cars in Brazil for over thirty years and in India since the 1990's ... and before that, had outsourced models to be built under licence in India since the early 1950's.
      • 6 Years Ago
      "Mid-90s British Rovers were Civics and Accords in Rover bodies with British styled interiors, then, of course, BMW broke in...."

      The BL-Honda partnership began in 1980 and the first fruit was the 1981 Triumph Acclaim, a rebadged Honda Ballade (Civic sedan) and later 1984 Rover 200, also a rebadged Ballade/Civic. The first complete new JV car was the Honda Legend/Rover 800 (the famed Project XX) in 1986. Although the partnership ended when BMW bought Rover in 1994, Rover still produced several Honda-based products (25 and 45) until it went bankrupt.
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