Fiat Wants Chrysler & Opel!
When you go about doing something, the saying “go big” is perhaps the best way to realize your dreams. For Italian automaker Fiat SpA they seem to have embraced this particular motto as they are currently going after Chrysler LLC and GM’s Opel/Vauxhall unit at the same time.
Less Than One Week Left For Chrysler
With just days left before Chrysler must come to terms with its own future, one that has to include partnership with another automaker, Chrysler has discovered that its April 30th deadline could pass without an agreement being reached. Should that happen, the automaker would likely be forced into bankruptcy, its assets liquidated, and tens of thousands of jobs lost.
Fiat could still snap up Chrysler in bankruptcy if an agreement isn’t reached before then. But, the automaker isn’t flush with cash, so making a bid for parts of Chrysler and controlling interest in Opel/Vauxhall is a difficult proposition. One way to get around this problem is to issue stock in Fiat in exchange for ownership in either or both automakers.
Fiat Denies Interest In Opel
As of right now, Fiat is denying that talks with GM to acquire controlling interest in Opel are currently in progress. Vauxhall is a carbon copy of Opel, its name adorns cars sold in the UK and in Ireland.
If Fiat were to gain controlling interest in Opel, that move would make it the second largest automaker in Europe behind Volkswagen. But, opposition to Opel’s sell off to Fiat could mount if German factories and jobs are lost in the process. Germany’s states have a significant role in how companies are run and could veto Fiat’s bid.
Besides Fiat, Canadian automotive components/part company, Magna International is interested in purchasing Opel. Magna tried and failed to buy Chrysler from Daimler in 2007 and is currently building an electric car with the Ford Motor Company.
Stay tuned…this auto industry soap opera is just getting started. Likely, they’ll be some more surprises in the offing, so don’t count anyone out yet!
Related: Can Chrysler Survive Without Fiat?
Fiat is one of the few beneficiaries of the auto meltdown and just shows what can be done when you have a sophisticated management team. Fiat has been doing a great job over the past decade and it seems as they will soon reap the rewards.
Would be a huge victory if they can get their hands on Chrysler and Opel. Nice post.
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