Posted on 02/13/2005 10:51:08 AM PST by PAR35
MILAN (Reuters) - General Motors Corp. will pay Fiat 1.55 billion euros ($1.99 billion) in a deal to drop an option which would have forced the U.S. giant to buy the Italian firm's loss-making car unit, GM said in a statement.
In the statement, GM said both the Fiat-GM Powertrain and the purchasing joint ventures would be dissolved.
GM will also acquire an interest in "key strategic diesel engine assets and other important rights" through the deal.
GM will return its 10 percent stake in Fiat Auto.
A mediation process to sort out the row over the put option ended in stalemate earlier this month but sources said GM and Fiat had continued to negotiate a settlement and avoid a lengthy, distracting court battle.
GM insisted Fiat had invalidated its option to sell 90 percent of Fiat Auto because of restructuring moves at the Italian carmaker. Fiat rejected that and promised to defend the put, which was core to its valuation.
Fiat Chief Executive Sergio Marchionne had threatened to exercise the put any time from Feb. 2 to force a quick valuation of Fiat Auto and squeeze a deal out of GM, not necessarily as a prelude to a sale.
Investors had hopes GM and Fiat would reach an out-of-court settlement, with estimates in news reports ranging from 1.0-1.8 billion euros.
©2005 Reuters Limited.
(Excerpt) Read more at money.excite.com ...
Another item in the litany of foolish moves by GM over the past few years.
It's a Fiat did ya see it?
I could be wrong, but didn't Fiat make the Yugo engines?
Feeble Italian Attempt at Transportation
Yes they did.
"Feeble Italian Attempt at Transportation"
ROTF.....Never heard that one!
GM is the company that stopped building Camaros and Firebirds.
With NO replacement.
The company that built the Aztec.
The company that puts Saab badges on Suburus.
The company which found the GTO reintroduction vehicle in Australia.
No, getting into the deal was foolish. Paying twice what they should have to get out of it was the best available move.
I knew a sports car store owner in eastern Iowa who counted up all the Fiats in the Cedar Rapids-Iowa City area and made sure he had a new starter on the shelf for every one of them. He generally sold out by the end of February.
Like the Cimmaron - it wasn't even good when they sold a much cheaper version as a Chevy. And their reliability as a make doesn't appear to be competitive with Chevy. http://www.autooninfo.net/RelPerCadillacCharts.htm
If you want quality, stick to Japanese, including made in the USA Japanese. (and consider Mazda and Nissan Japanese at your own risk.)
You're showing your age, citing the Cimarron! Yah, that was the homecoming float in the P.O.S. parade.
What Cadillac is offering today is, indeed, truly impressive.
Luxury cars (including Japanese) always seem to have "worse" reliability ratings than their more pedestrian stablemates. More gizmos to break, and pickier owners.
My first car back in the '60s was a Fiat. It spent more time in front of the mechanics' garage waiting for parts from Italy that I could ever drive it.
Story was the Vatican (at the time) owned or had a substantial amount of stock invested in the company.
As an RC, I was totally embarrassed.
A Fiat Spyder...what a piece of sh*t!
I know that Mazdas are more Ford than Mazda these days, but what's wrong with Nissan? Mine has over 150,000 miles and is still as reliable as a wood stove.
I know that Renault bought 40% of Nissan, but I also heard that Renault will have no input on the Nissan lines sold in Japan or the US. If Renault ever gets a hand in building Nissans I won't buy another one. Renault has built some of the worst dogs in automotive history.
I worked for them for many years. They have shot their new car market to death for the next five years with the 0% financing and the giant rebates.
They force their franchises into giving up the hold-back, thus starving the salesmen and pretend they are rewarding them with GM points-----of which you need , literally, millions of them to "earn" an electrical appliance.
I hope they die a painful death and I will continue driving my Fords.
>>>>The homecoming float in the P.O.S. parade<<<<<
Now that there is funny, I don't care who you are, that there is Funny!
Move over American Motors!
I admit that I like Cadillac's aggressive grill and boxy shape.
True. And they have been since the 80's. Honda's SUV is actually an Isuzu. Buy it at the Isuzu dealership and save a fortune.
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