View Full Version : GM/Fiat News: GM agrees to $2 billion Fiat payout

01-31-2005, 11:59 PM
GM agrees to pay Fiat two billion dollars to escape auto purchase: report<p>Mon Jan 31, 3:34 PM ET<br> <p><br>MILAN (AFP) - General Motors has reportedly agreed to pay two billion dollars (1.5 billion euros) to the Italian industrial conglomerate Fiat if it will abandon its option to sell Fiat Auto to the US automaker, the RadioCor news agency reported, citing sources close to the affair.<br> <br>Fiat was not expected to comment on the matter before a meeting Tuesday of its executive board.<p>A GM spokesman in the United States refused to comment on the agency report.<p>Under an agreement signed in 2000 and revised in 2003 Fiat has the right to sell Fiat Auto to General Motors from January 24, 2005 until July 24, 2010.<p>But GM, which holds a 10 percent stake in Fiat Auto, insisted that the option was no longer valid since Fiat Auto's recapitalization in 2003 and the sale by Fiat of its automobile credit unit Fidis to a group of banks.<p>Fiat and GM on January 24 agreed to carry on with mediation efforts to resolve the dispute until February 1. Fiat said it would be entitled to exercise the option on February 2.<p>For GM the option of acquiring Fiat Auto appeared to be an attractive idea five years ago. But since then Fiat Auto has suffered a financial crisis, running up debts of eight billion euros.<p>Italian press reports have said Fiat was seeking between one and three billion euros in compensation for abandoning the sales option.<p><A HREF="http://digbig.com/4cnxt" TARGET="_blank">http://digbig.com/4cnxt</A>

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02-01-2005, 01:32 PM
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02-01-2005, 05:07 PM
I hope this helps FIAT get back on its feet.. I'm guessing Alfa Romeo isn't coming to the US through GM. FIAT better bring them over themselves and make some money!

02-02-2005, 10:26 AM
<A HREF="http://news.bbc.co.uk/2/hi/business/4223157.stm" TARGET="_blank">http://news.bbc.co.uk/2/hi/business/4223157.stm</A><p><B>More importantly; the car maker's debts rose to a whopping $301bn last year when the giant borrowed extensively in the bond markets to deal with a potentially destabilising pension fund deficit:</B><p>If thatis GM's debt, then it is around the same size as Canada's debt. <IMG NAME="icon" SRC="http://www.germancarfans.com/images/forums/bonk.gif" BORDER="0">