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Despite the extremely sticky partnership proposition it’s already struggling through with Chrysler, Fiat is in talks to join up with another ailing American automaker: GM.
Automotive News, citing sources familiar with the matter, reports that Fiat is considering a partnership with GM’s Europe and Latin America operations. This wouldn’t be the first time such an arrangement existed between the two automakers: back in 2000, GM bought a 20 percent stake in Fiat.
The two companies combined their European and Latin American purchasing and powertrain operations in two 50-50 joint ventures. That alliance ended in 2005, when GM paid Fiat $2 billion so that it wouldn’t have to buy the remaining 80 percent of the Italian company. The Opel/Vauxhall Corsa and Fiat Grande Punto were products of the automakers’ collaboration.
The new deal would include GM’s Opel/Vauxhall division, along with its Latin American operations, but would not include Saab or European Chevrolet.
The source says Fiat’s plan to merge with GM is not an alternative to a partnership with Chrysler, but in addition the Chrysler alliance. Fiat has been in talks with Chrysler for months, as Chrysler tries to appease both its newest creditor, the U.S. government, and its potential partner, Fiat.
Source: Automotive News
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