Last week it was Chrysler, this week Fiat is attempting to buy Opel, GM's German subsidiary. The goal is the formation of a European supergroup similar in scope to Volkswagen.
According to a report in the Financial Times, Fiat CEO Sergio Marchionne aims to split Fiat's car operations from the conglomerate's other businesses and combine it with Opel, Saab and its newly acquired stake in Chrysler. "From an engineering and industrial point of view, this is a marriage made in heaven," Marchionne told the FT.
History shows that such mergers rarely end up creating much value, but Marchionne is hoping that the depressed state of the industry opens a few door in his drive to remake Fiat into a global powerhouse.
estreka says:
10:16 AM, 05/ 4/09
Fiat smells of Detroit.
Marchionne might be right, though. Never before have such incredible deal been available. People seem to have forgotten the true value of these brands.
jederino says:
02:09 PM, 05/ 4/09
Fiat may also benefit from GM and Opel reliabiality from plants, design and brainpower. Imagine - Fiat style with competitive quality and reliability...!
stephen987 says:
05:29 AM, 05/ 5/09
Jederino, I like the way you think. But I wonder if we might get the reverse instead--traditional GM blandness with traditional Fiat reliability. Both companies have evidently made great quality strides in the past decade--I hope those gains aren't lost in the shuffle.