Fiat To Take Stake in Opel?

Ambitious? You have no idea! Fiat, led by it's deft CEO Sergio Marchionne is pursuing many different partnerships and potential deals to increase Fiat's global standing. Is it just posturing to scare Chrysler's debtors to move towards a deal or is there something to it?

The deal with Chrysler is far from done and the two are still engaged in talks over the alliance. While Fiat of course could survive by itself, the Chrysler deal gives them access to the critical U.S market. That is what Fiat really wants for the future. The Chrysler deal has and will continue to take the upmost importance over any deal with Opel.

That's not to say Fiat couldn't be looking into both, although that would mark a dramatic expansion and taking on of new responsibility all at once. Rumors were swirling of the possibility, annd then then more confirmation came by way of an Opel labor boss. He said Fiat is interested in taking a majority stake and will sign a "letter of intent" with Opel next week. Following that, Sergio Marchionne said they were taking a "hard look" at Opel. Definitely sounds like something is going on.

Could that be the company GM would "give away" it's ownership stake in exchange for a cash infusion? Maybe so. GM always seems to come out on the short end of the deal in it's agreements with Fiat though. Just a few years ago, the failing Fiat was trying to force GM to purchase it. To avoid that possibility, GM have $2 billion to the company which CEO Sergio Marchionne used to develop new vehicles and turn the company around.

Fiat is interested Opel because of the platforms that underpin the Insignia and Astra. They both employ next generations of GM's platforms that currently underpin Fiat products like the Croma Linea. If the deal pans out, expect GM/Fiat/Opel product development collaborations to continue.

Fiat is now on a global expansion rampage and is doing well with it's own business. While other volume automakers have posted large losses, Fiat only reported a small loss of 48 million euros (around $63 million USD at current exchange rates). The lost is the first for Fiat since 2005. I say congratulations to the company for executing such a quick turnaround! I wish our companies here in the U.S could say the same.