Now, it's getting interesting...

http://www.autonews.com/article/2009...305079937/1057

 

If GM has bidders for SAAB and Opel already, they don't need Fiat. If Fiat wants them badly enough they will renegotiate. A broken GM isn't a broken Chrysler in this instance.

 

Well, since the last time Fiat and GM had an equity tie-up it went so well ....

Of course things are different this time around. GM has no money now to pay off the mafia to get out of a poorly structured deal, so maybe there's not too much downside. Although I'm not sure I see the upside if they're just getting equity and not cash. I thought the idea of GM pawning its foreign interests was to get badly needed cash to save its hide in the immediate term.

 

Yeah, WTF mate.

What are they thinking??

 

Looks like GM will end up being just North America, Korea, China, Australia.

They will end up owning a small stake in the Fiat/Opel/Chrysler group who is in Europe, Latin America, and North America.

Interesting...

 

Considering that Fiat may soon be the 2nd largest manufacturer behind Toyota, this might not be a bad idea.

 

IMO this isn't a bad idea as Fiat will own Chyrsler and with VW/Porsche buying up so much, there's a good chance before all of this is over GM may end up with a good chunk of what is left of the automotive world.

 

I am usually not this crude, but I think you call this a circle j.....k

 

Didn't GM pay Fiat $2 billion dollars a few years back to take back the stake GM owned?

 

So...in a way...GM would own 10.5% of Chrysler? and 30% of FIAT, Alfa Romeo, Maserati and 25.5% of Ferrari?

 

Yeah, money which they should have never paid.

 

I'd rather see GM partner up with Renault-Nissan... similar to what Kirk Kerkorian had proposed than to see GM get screwed by Fiat, again.

Once bitten, twice shy.

 

$2 billion in cash plus $4 billion in GM stock, which Fiat cashed out as soon as it could.
GM did get access to some diesel engines for that $6B though.

 

If people are surprised by this they shouldn't be. Wagoner was reponsible for the Fiat fiasco the first time around.

Fritz likes the idea again.

Fritz is Wagoner 2.0

It makes me sick.

 

Personally? I think the Fiat deal was bad enough for the Board to have given Wagoner his walking papers. Of course, the Board has basically been in a coma for years now.