Fiat the Italian car company, has lost the bidding war for Opel, which is the General Motors operation in Europe. Although, I have from day one found it curious as to how you could win a bidding war with no money, as was the Fiat strategy! Opel, with headquarters in Germany (Ruesselsheim), is a very big deal, and employees 25,000 in Germany alone.
As those following the Chrysler saga will know; Fiat has emerged as a player on the world automotive stage. It's unique, no money down arrangement, with the United States government, to take over management, and an initial 20% stake in the new "Chrysler Group", has given Fiat new ambitions.
Part of the new ambitions included a controlling interest in Opel. Read my post of May 22/09.
The Fiat plan, was predicated on the ability to manufacture approximately 6 million cars per year, the amount needed to be a stand alone global car maker, according to Fiat CEO Sergio Marchionne. Chrysler and Fiat together may be able to produce up to 4 million cars per year. This means Marchionne has missed his target.
The question must be asked. With Opel now in the hands of Magna (a Canadian company) and the Russian government (through Sberbank Rossii, a 60% State owned company), is the Fiat plan for Chrysler still viable?
My view, is that Fiat should move quickly. Magna does not have experience mass producing cars, and Fiat might still be able to become part of this deal. After all, Fiat has control of the new "Chrysler Group" and the support of the United States and Canadian treasury.
These recent events could have serious consequences for Canada, and the Billionsssss we have invested, courtesy of the grateful taxpayer. In Windsor Essex, which is headquarters for the Canadian operations of Chrysler, there will be consequences for sure.
Not much about this on the pages of the local Windsor Star! No, they have been too busy attacking and demonizing striking City of Windsor employees. Hey, we know whats important here in Windsor Essex.
