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Fiat’s new plans: New Chrysler to join Opel?

by David Zatz on

 

Detroit News carried a surprise article claiming that Fiat has publicly stated it’s board’s desire to create a new company which would include Chrysler, GM’s European holdings (Opel and Vauxhall), and Fiat itself. This would result in an auto company producing over $100 billion in sales per year.  The Fiat Group would spin off Fiat Group Automobiles do accomplish this.

GM has announced that it is seeking investors to buy part or all of Opel (which presumably includes Vauxhall, a brand sold only in the U.K.). 

Fiat has already committed to an alliance with Chrysler. The company’s CEO has repeatedly stated his belief that automakers must have (unlike Mercedes or BMW or Subaru) have a very large production to survive.

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