Further Turmoil At Fiat

In 2000, GM acquired 20 per cent of Fiat Auto. As part of the deal, Fiat could sell the remaining 80 per cent to GM in 2004. Now there are indications that the Italian company is offering to free GM from its obligation in return for GM’s approval of restructuring moves.

Nothing has yet been decided, but the restructuring could involve bringing in VW as an investor in Fiat’s Maserati brand, or a possible sale of part or all of Alfa Romeo. Any such move would require the consent of GM, and the price for this could well be the removal of the obligation to purchase. In the meantime, Fiat’s joint chief executive Gabriele Galateri has resigned after less than six months in the job.