LoongLee wrote:Old Timer,,,,,, I'm a little bit slow so you or someone else is going to have to explain to me how a company (FIAT) can "take over" GM with only 15% of stock ownership? Is that some more of the "New Math" I've been hearing about?

Fiat to Bid for GM Europe, Chrysler
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MAY 05, 2009 06:15
Italy’s largest carmaker Fiat announced yesterday plans to transform the global automotive landscape by buying the European operations of General Motors and the bankrupt Chrysler.

Upon completion of the two deals, Fiat will rise from ninth to third in global auto production, with output to exceed six million vehicles per year.

“We’re considering a plan to acquire Chrysler and GM’s European operations to create a new company,” the Italian automaker said, indicating its plan to buy Germany’s Opel, a GM affiliate.

Fiat CEO Sergio Marchionne yesterday began negotiating with Germany’s economy and finance ministers. Opel in February asked the German government to provide bailout funds of 3.3 billion euros (4.4 billion U.S. dollars). Berlin promised support for the company acquiring Opel.

Fiat said, “If we acquire Opel and Chrysler, we will evaluate several corporate structures, including the potential spin-off of Fiat Group Automobiles and the subsequent listing of a new company combining those activities with those of GM Europe.”

Fiat has several car brands including Fiat, Alfa Romeo and Ferrari.

If the plan proceeds, Fiat will turn into a mammoth carmaker producing six million to seven million vehicles with revenues of 80 billion euros (106 billion dollars) per year, comparable to the performances of Toyota, GM or the Volkswagen-Audi Group.

In an interview with the Financial Times, Marchionne said, “I hope to complete the transaction by the end of May and list shares of the new company, tentatively called Fiat/Opel, by the end of the summer.”

Fiat’s aggressive move is highly likely to spark further consolidation in the global car industry, but problems could arise in negotiations given opposition to the deal by Opel’s unions and German politicians. Marchionne has pledged not to close any car assembly plants in Germany and that Italy will share in any job cuts.

Fiat has several car brands including Fiat, Alfa Romeo and Ferrari.

LoongLee wrote:Old Timer,,,,,, I'm a little bit slow so you or someone else is going to have to explain to me how a company (FIAT) can "take over" GM with only 15% of stock ownership? Is that some more of the "New Math" I've been hearing about?

LoongLee wrote:BobH,,, as a long as we're talking realism here,,,, the truth is the US automakers have been done in by the labor unions. They have been unable to compete with non union imports. The foreign automakers built most of their plants in the south without labor unions. The rust belt in the north with it's huge union costs couldn't compete. Barack Obama and the Democrats now have to figure a way to save the union jobs (their voters) and save the US automakers. It puts them right in the middle. The people who are getting s*****d are the bond holders during the reorganizations. The labor unions will have to accept shares with huge stakes in the companies and then we'll see how often they go on strike against their own company for more benefits.

Oh and by the way,,,, the fat lady hasn't sung yet,,, I wouldn't count the US automakers out yet. And tell me again, who are the British automakers or motorcycle manufacturers?

Loung Lee wrote:And tell me again, who are the British automakers or motorcycle manufacturers?

LoongLee wrote:Oh and by the way,,,, the fat lady hasn't sung yet,,, I wouldn't count the US automakers out yet. And tell me again, who are the British automakers or motorcycle manufacturers?