Fiat Looking to Pickup GM Europe Units to Create New Super-Fiat Company

ROME - May 3, 2009: AP is reporting that Fiat is in talks with General Motors Europe to acquire most, if not all of GM's European brands.

According to the AP story, "Fiat said in a statement Sunday it's evaluating the possible spinoff of its auto business to form the core of the new company." The current Fiat Automobiles Group includes the Fiat, Alfa Romeo and Ferrari brands. Combined, the new company with Chrysler and the GM brands would have euro80 billion ($105 billion) in annual revenues.

If the AP story accurately reflects GM's intentions it would be contrary to Fritz Henderson's (CEO and President of GM) comments last week when he talked about the profitability of Vauxhall (for example) and GM's desire to remain in Europe and be a global business.

Following in the steps of Chrysler's bankruptcy filing last week and the conclusion of a deal between Fiat and Chrysler, new reports have surfaced that Fiat will be buying all of Chrysler's assets this week.