Fiat Rumored to be Interested in Buying a Majority Stake in Opel
Not long ago, the Fiat Group was partially in the arms of General Motors and in deep financial woes with many analysts then questioning the automaker's future. Now, the Italians have emerged as an automotive powerhouse that's not only fighting to form a partnership with ailing U.S. carmaker Chrysler but according to the latest reports, is also ready to invest in General Motors' Opel and Vauxhall brands. Citing unnamed sources familiar with the negotiations, German magazine Spiegel went as far as to claim that Fiat will sign a letter of intent as soon as next Tuesday, something that will allow the Italian carmaker to obtain a majority stake in Opel.
The German magazine said however that Opel workers 'sharply oppose' Fiat's interest in the company. Klaus Franz, who is a delegate of Opel employees on the company's works council, told Spiegel that he feared "dramatic reduction of jobs at Opel and the closure of plants in Germany," mainly due to the fact that two companies' model portfolio overlap. Franz also said that company had bad experiences with Fiat in the past "We know the bride," he was quoted saying.
Officially, Fiat has made no mention of GM's European unit, which sounds reasonable since the Italians are still in the midst of negotiations with Chrysler LLC.
Our take? Fiat doesn't seem to have learned anything from its past troubles and unsuccessful ventures with other automakers. Now, just as they have managed to shape up the company a bit, they're trying to get into a new mess by acquiring / forming partnerships with ailing automakers at the worst possible time - during a world spread financial crisis. If anything else, Fiat should concentrate on fixing its own marques like Alfa Romeo and especially Lancia which has been a shadow of its former self for many years now.
Link: Spiegel
- Fiat-chrysler "willing" To Form An Alliance With Opel, Gm Says It's Not Interested
In 2000, General Motors and Fiat formed an alliance in which the American company gained 20 percent of the Italian manufacturer’s shares in exchange for 5.1 percent of its own stock. Among other projects, the two companies jointly developed the...
- Vw Reportedly Put A Price On The Table For Gm’s Opel After Hearing Rumors About Hyundai’s Interest
German monthly publication ‘Manager Magazin’ reported in its latest issue that the Volkswagen Group has a far deeper interest in Opel than originally thought. Citing unnamed sources close to the automaker, the financial magazine said that...
- Fiat Skips Talks With German Gov. On Opel, Disagrees With Emergency Funding
Italian automaker Fiat S.p.A, has announced that it will not attend a scheduled meeting today with the German government due to "perplexed" financial issues that came up during talks for the acquisition of GM's Opel unit. In a prepared statement,...
- Gm: Opel's New Owner To Be Chosen By End Of May
In a news conference in Detroit today, General Motors CEO Fritz Henderson told reporters that the company will single out a buyer for Opel and its British sister brand Vauxhall, before the end of May. "We are speaking with multiple bidders. We would like...
- Chrysler And Fiat Reported To Be In Partnership Talks
Once again, the media is reporting that Chrysler LLC and the Fiat Group is in talks to form a strategic partnership that could give the American automaker access to platforms, engines and transmissions to Fiat's mini, small and lower /upper medium...