Here's What Fiat Says it Will Do

December 27, 2001

Sacramento - It's pretty hard to imagine that Italy's Fiat would do anything else but be in the car business. The company has been led by the Agnelli family in the car business since 1899. It has become a place for other noted Italian automakers to come to rest. When Lancia could no longer sustain itself economically, it became part of Fiat. The same happened with Alfa Romeo. Ferrari came to rest under Fiat when Henry Ford angered Enzo in discussions about buying the Italian company.

Despite all this heritage, there have been rumors that the car business may not be the future for Fiat. Giovanni Agnelli has apparently toyed with the idea of selling the car business and concentrating on developing an industrial company. Many have been surprised that Fiat did not play a larger role in the pending acquisition of Daewoo. Most thought Fiat would look to Daewoo as a way to expand its market and its line of small cars.

For the doubters, the 80-year old Agnelli recently his workers that Fiat would go on making cars. His comments were made in an attempt to allay fears that Fiat would get out of the car business after announcing a major restructuring program last week. Agnelli, who has no family heir- apparent, as much as said that he sold 20% of the company to General Motors to assure that it would remain in the car business.