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GM negotiating to take stake in Fiat.


battyr

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http://uk.reuters.com/article/burningIssue...E5461FB20090507

 

Under the new round of negotiation, Fiat will spin off their cars as a separate company. GM will give this new company Opal and GM South America to be merged with the new Fiat company. They will have dominanc in both Europe and South America. In exchange GM with get between 10% and 30% of the new company. The new company will also be a major player in Russia and India. They will also have Chrysler.

 

The new Fiat company will share world product development with GM and Chrysler.

 

GM will concentrate on sales in the US and China and Japan. Thats more than half the world market. Fiat, the rest of the world plus Chrysler in the US.

 

GM benefits by not having to bail out Opal and sharing development cost between 2 giants in the industy. GM get to downsize big time and still design cars and buy parts as if they are the largest auto company in the world.

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Wow. This GM-Chrysler-Fiat relationship is turning into something worthy of a Lifetime Movie of the Week.

It would definitely have to be a menage a trois, with all the screwing around going on. Man, this is ridiculous.

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http://uk.reuters.com/article/burningIssue...E5461FB20090507

 

Under the new round of negotiation, Fiat will spin off their cars as a separate company. GM will give this new company Opal and GM South America to be merged with the new Fiat company. They will have dominanc in both Europe and South America. In exchange GM with get between 10% and 30% of the new company. The new company will also be a major player in Russia and India. They will also have Chrysler.

 

The new Fiat company will share world product development with GM and Chrysler.

 

GM will concentrate on sales in the US and China and Japan. Thats more than half the world market. Fiat, the rest of the world plus Chrysler in the US.

 

GM benefits by not having to bail out Opal and sharing development cost between 2 giants in the industy. GM get to downsize big time and still design cars and buy parts as if they are the largest auto company in the world.

 

 

Thanks for posting. I saw a similar report last night but couldn't find it this morning.

 

In the report I read one analyst said something like "there isn't a conference room in the world big enough to put all these guys in". Pretty much sums it up as far as I'm concerned.

 

I think Fiat's eyes are bigger than its stomach. Integrating non-related companies is painstaking, time consuming, and often times does not yield the synergies one had hoped for. While you're trying to build your empire, the Japanese and Korean companies are marching ahead building from within with common systems and culture.

 

It's a big gamble he's taking. But I suppose if you can get Chrysler and Opel without putting in skin in the game, why not?

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Greetings,

 

Gosh. This is going to become a reality show sometime soon? One company incapable of competing in one of the best markets in the whole world buying into another company that has not been competitive in that market for the last 15 years or more? and going into business to some degree with AMC, I mean full time failure GM and its management?

 

Who is going to bail that mess out? Their govt or ours?

 

Man, I am sorry, but at this point I really don't have much positive to say about Chry or GM except that I am glad I did not buy a 5.9 TDI and my Tahoe is 14 years old and ready to die of natural causes.

 

Peace and Blessings

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Thanks for posting. I saw a similar report last night but couldn't find it this morning.

 

In the report I read one analyst said something like "there isn't a conference room in the world big enough to put all these guys in". Pretty much sums it up as far as I'm concerned.

 

I think Fiat's eyes are bigger than its stomach. Integrating non-related companies is painstaking, time consuming, and often times does not yield the synergies one had hoped for. While you're trying to build your empire, the Japanese and Korean companies are marching ahead building from within with common systems and culture.

 

It's a big gamble he's taking. But I suppose if you can get Chrysler and Opel without putting in skin in the game, why not?

 

I don't think Fiat wants to take over the world. Rather they know that they need to share all their product development with other partners. If they can do it with one big company, it is easier. They can streamline the European operations by mergining Opal and Fiat. This would force cooperation by being under one management. Also would speed up design work.

 

What would make more sense to me would be Merging GM and Chrysler. Merging Fiat and Opal. And having GM and Fiat work together the way Renalt and Nissan does.

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Would it surprise anyone if GM now gave Fiat all it's international operations in return for a big stake in Fiat? This way GM goes through Chapter 11 and a Post chapter 11 GM then merges with Fiat to create:

 

New GM/ Fiat/ Chrysler/ Ferrari group controlled by the Godfather in Sicily :hysterical:

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Would it surprise anyone if GM now gave Fiat all it's international operations in return for a big stake in Fiat? This way GM goes through Chapter 11 and a Post chapter 11 GM then merges with Fiat to create:

 

New GM/ Fiat/ Chrysler/ Ferrari group controlled by the Godfather in Sicily :hysterical:

 

The agnelli family wants to keep Ferrari for themselves. Separate from any Fiat partnership.

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Don't know about you guy's but I'm tired of trying to keep up with all the latest rumors, wheeling, dealing, dreaming, scams and schemes. Someone let me know when it's all over.

+2 and I think all of the world is with you on this.

 

I've always told young people to get into Corporate Law. And it still looks like a great place to make money.

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+2 and I think all of the world is with you on this.

 

I've always told young people to get into Corporate Law. And it still looks like a great place to make money.

It all sounds like corporates shooting from the hip and "Lets make a Deal" all rolled into one.

I guess marriages of convenience are to be expected in tight times - to the lifeboats......

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lol

 

poor Chrysler, wonder if fiat is wearing a condom while they go through the whole cheer squad and back to the geeky girl (Chrysler)

 

:hysterical:

 

I hope poor Chrysler is protected this time. They have already caught bad things from Daimler only to get dumped and Fiat will apparently sleep with anything.

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Greetings,

 

Gosh. This is going to become a reality show sometime soon? One company incapable of competing in one of the best markets in the whole world buying into another company that has not been competitive in that market for the last 15 years or more? and going into business to some degree with AMC, I mean full time failure GM and its management?

 

Who is going to bail that mess out? Their govt or ours?

 

Man, I am sorry, but at this point I really don't have much positive to say about Chry or GM except that I am glad I did not buy a 5.9 TDI and my Tahoe is 14 years old and ready to die of natural causes.

 

Peace and Blessings

 

 

ohh... they will call it a reality show but it will just look like reruns of the three stooges..... :gang: :poke:

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Geez. This ain't gonna be BRITISH Leyland, it's going to be WORLDWIDE Leyland.

 

The theory, apparently being, that a bunch of sad-sack companies can be competitive by pooling their ineffectual managements.... Managements that have, thus far, been able to run their own companies successfully..

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I wonder what this all will do to the Ford Ka.

 

As I said the first time before our over-active moderator/egotist imposed his will, the Ka will be fine...so long as Ford can survive the next 2-3 yrs of Gov't competition...

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As I said the first time before our over-active moderator/egotist imposed his will, the Ka will be fine...so long as Ford can survive the next 2-3 yrs of Gov't competition...

Whatevs, babe, now that it's erased, you can claim whatever you want about it. I mean, for all the rest of the board knows it was pics of the Queen Mum's 1980 birthday bash.

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As I said the first time before our over-active moderator/egotist imposed his will, the Ka will be fine...so long as Ford can survive the next 2-3 yrs of Gov't competition...

You do know that Ka uses the same chassis and is built in the same factory as Fiat 500....right?

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