Gawain 0 #1 February 13, 2005 This is a good thing. This gets GM out of Fiat's business and eliminates the risk of Ferrari and Maserati (owned by Fiat) becoming a step child of the most inefficient auto maker in the world. http://www.foxnews.com/story/0,2933,147478,00.html GM returns its interest in Fiat Auto, and both will share strategic diesel engine rights (GM needs this, as they have no auto diesel engine designs at all). Hopefully, this will remove a gorilla of a bureaucracy off of Fiat's business and allow the company more flexibility. This should also free up Fiat's plans to reintroduce Alfa Romeo back in the US market.So I try and I scream and I beg and I sigh Just to prove I'm alive, and it's alright 'Cause tonight there's a way I'll make light of my treacherous life Make light! Quote Share this post Link to post Share on other sites
complexity 0 #2 February 14, 2005 Actually, Fiat is the one that is the inefficient, debt-laden company with absolutely no worth in the market. It has $10 billion dollars in debt and GM paid Fiat to avoid a long legal battle where Fiat was going to force GM to fully acquire its company. GM did not want to and paid $2 billion in a settlement to avoid having to take all of the company. Originally it only wanted a small part of the company so that it could have access to its deisel engines. Quote Share this post Link to post Share on other sites
Gawain 0 #3 February 14, 2005 QuoteActually, Fiat is the one that is the inefficient, debt-laden company with absolutely no worth in the market. It has $10 billion dollars in debt and GM paid Fiat to avoid a long legal battle where Fiat was going to force GM to fully acquire its company. GM did not want to and paid $2 billion in a settlement to avoid having to take all of the company. Originally it only wanted a small part of the company so that it could have access to its deisel engines. That's fine with me. Fiat's $10B in debt is a drop in the bucket against its current and potential revenue value (over $63B). Their sales growth has been somewhat steady and positive. Meanwhile, GM has been in negative growth for some time. Everything they touch turns to rust. Saab, Isuzu, Opel, and Vauxhall have seen the identities of their products evaporate in the face of a company wishes people just wanted a box with wheels. Holden of Australia seems to have benefited, Subaru is slowing being corroded, having to pass it's impressive Impreza design to Saab (9-2x) in an effort to attract an "entry" level market in the luxury segment. *sigh* Thanks to GM's vision, American brand Oldmobile is dead. The Pontiac Bonneville, dead. The Camaro, dead. Saturn, has yet to produce positive earnings for the company. The list goes on.So I try and I scream and I beg and I sigh Just to prove I'm alive, and it's alright 'Cause tonight there's a way I'll make light of my treacherous life Make light! Quote Share this post Link to post Share on other sites
bobsled92 0 #4 February 16, 2005 I did't know Masarati was FIAT/ I just know the Maseratie in my neiborhood has a Chrysler emblem and is really a Lebaron with leather._______________________________ If I could be a Super Hero, I chose to be: "GRANT-A-CLAUS". and work 365 days a Year. http://www.hangout.no/speednews/ Quote Share this post Link to post Share on other sites
complexity 0 #5 February 16, 2005 QuoteQuoteActually, Fiat is the one that is the inefficient, debt-laden company with absolutely no worth in the market. It has $10 billion dollars in debt and GM paid Fiat to avoid a long legal battle where Fiat was going to force GM to fully acquire its company. GM did not want to and paid $2 billion in a settlement to avoid having to take all of the company. Originally it only wanted a small part of the company so that it could have access to its deisel engines. That's fine with me. Fiat's $10B in debt is a drop in the bucket against its current and potential revenue value (over $63B). Their sales growth has been somewhat steady and positive. Meanwhile, GM has been in negative growth for some time. . ummm... i dont' know what you are reading, but Fiat has been in decline and hasn't made a profit in awhile -- in fact, its has not met its sales projections in a few years and is looking to partner again with another auto company to help it in its restructuring and development. In fact, its own company head says it could only have 2 years left before bankruptcy. This $2 billion from GM gives it some more time to restructure and try to turn around. And GM actually had profits of $2 billion this past year. It continues to have growth however not as much as its competitors Toyota and Nissan. The reason that GM is suffering is not because of a lack of quality (in fact it has scored at the top in quality standards) but because of its huge legacy costs and the trade inequities that Japan has. ( I do financial analysis/research for an investment consulting company) I actually don't even have a car at the moment!! Quote Share this post Link to post Share on other sites