Fiat Auto To Use GM Dealers To Sell Cars In Mexico

MILAN May 19, 2003; Dow Jones reports that Fiat SpA said today that it will soon begin selling cars in Mexico, using the local dealership network of ally General Motors Corp. (GM).

Versions of Fiat Auto's Palio model, made in Brazil, will be available in Mexico by the third quarter of the year, the company said, adding that initial forecasts are for sales of around 20,000 units a year.

The new agreement further strengthens ties between Fiat and U.S. auto giant GM, which bought a 20% stake in Fiat Auto in 2000.

The two companies have a joint venture in procurement and in power trains for smaller vehicles. Last month, they announced a broader alliance to jointly create a common platform for larger cars.

Fiat is facing financial woes due to slumping sales in the Italian and Western European markets. However, it is the leading car maker by unit sales in Brazil.