Fiat is intent on becoming the next global automotive superpower, with its sights set on swallowing both Chrysler and GM’s European division Opel.
If the bold strategy succeeds, the new Fiat group could triple its production to 6m vehicles annually according to industry analysts – although not before a vicious cost-cutting exercise slashes through major areas of overlap between the three companies. Fiat is well advanced in negotiations to secure Chrysler, which is currently less than a week away from bankruptcy if it can’t show the US government it is a viable contender for more bailout funds.
The chief executive of Fiat, Sergio Marchionne has confirmed the intention to cement a deal with Chrysler remains Fiat’s ‘first and foremost objective’. However Marchionne has also said Fiat will be a ‘willing player’ in a drive to further industry consolidation.
According to a Financial Times article today, Fiat insiders have confirmed they are talking to the German government about a possible move on Opel. However discussions are at an early stage, and Fiat is expected to face strong resistance from German unions who fear major job losses if such a union goes ahead.
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