Fiat to make more acquisitions including Opel and Saab

Fiat to make more acquisitions including Opel and Saab

Fiat logo

Fiat’s new alliance with Chrysler may only be the beginning for the Italian automaker. According recent reports coming out of the UK and Germany, the Fiat’s expansion plans aren’t limited to its 20% stake in Chrysler — Fiat is also considering acquiring General Motors’ European operations, including Opel, Vauxhall and Saab.

A new super-company would be formed that includes Fiat, Lancia and Alfa Romeo, along with Chrysler and GM Europe, into one corporate entity worth around $106 billion USD and would rival Volkswagen in being the world’s second largest automaker behind Toyota.

In an interview with the Financial Times, Fiat’s CEO Sergio Marchionne spoke about the potential union, “From an engineering and industrial point of view, this is a marriage made in heaven” and with the full support of the automaker’s board, Marchionne hopes to have the deal completed this month, with shares of the new company temporarily dubbed Fiat/Opel — available in the coming months.

Marchionne believes that the alliance would make Fiat a stronger player in the global marketplace during the economic downturn and through merging Fiat and Opel’s B- and C-segment platforms, along with absorbing Opel’s larger D-platform and Fiat’s sub-compact A-segment offerings, could save around 1 billion euros each year.

German trade unions are throwing a spanner, citing concerns about job losses and factory closures, and according to the German magazine WirtschaftWoche, Fiat’s initial offer of $1.33 billion to acquire GM’s European operations was rejected.

Marchionne is scheduled to present Fiat’s plan to an assortment of German leaders this week. Check back for further updates.

Fiat logo

Fiat’s new alliance with Chrysler may only be the beginning for the Italian automaker. According recent reports coming out of the UK and Germany, the Fiat’s expansion plans aren’t limited to its 20% stake in Chrysler — Fiat is also considering acquiring General Motors’ European operations, including Opel, Vauxhall and Saab.

A new super-company would be formed that includes Fiat, Lancia and Alfa Romeo, along with Chrysler and GM Europe, into one corporate entity worth around $106 billion USD and would rival Volkswagen in being the world’s second largest automaker behind Toyota.

In an interview with the Financial Times, Fiat’s CEO Sergio Marchionne spoke about the potential union, “From an engineering and industrial point of view, this is a marriage made in heaven” and with the full support of the automaker’s board, Marchionne hopes to have the deal completed this month, with shares of the new company temporarily dubbed Fiat/Opel — available in the coming months.

Marchionne believes that the alliance would make Fiat a stronger player in the global marketplace during the economic downturn and through merging Fiat and Opel’s B- and C-segment platforms, along with absorbing Opel’s larger D-platform and Fiat’s sub-compact A-segment offerings, could save around 1 billion euros each year.

German trade unions are throwing a spanner, citing concerns about job losses and factory closures, and according to the German magazine WirtschaftWoche, Fiat’s initial offer of $1.33 billion to acquire GM’s European operations was rejected.

Marchionne is scheduled to present Fiat’s plan to an assortment of German leaders this week. Check back for further updates.

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