While Fiat is already in the process of acquiring U.S. automaker Chrysler LLC, it acknowledged on Sunday that it is also looking to expand its reach to include GM's European operations.
Fiat has already been in talks for months over GM's German arm, Opel. GM also owns the British company Vauxhall and the Swedish carmaker Saab.
However, Fiat is not the only bidder for Opel. Last week, Canadian car parts maker Magna International Inc. presented German Economy Minister Karl-Theodor zu Guttenberg with a “rough concept for a commitment with Opel.” And a deal for all of GM Europe is just an idea for now.
It's unclear if Fiat's takeover of Chrysler will work to save the beleaguered car company. Fiat has often been said to be an acryonym for "Fix it again, Tony," a reference to the company's reputation for unreliable automobiles.
In fact, the takeover of Chrysler by Fiat is complex:
- Fiat will start with 20 percent of the new Chrysler
- It will gain another 15 percent by hitting three goals: providing international distribution for Chrysler vehicles, building a car that gets 40 miles per gallon in the U.S. and making a new fuel- efficient engine at a U.S. plant.
- Fiat can then buy an additional 16 percent when government loans are repaid.
But if Fiat can turn this, and the other deals as well, into winners, it could emerge as the global player it seems to want to be, "Fix it again, Tony" notwithstanding.
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
