delighted to have been able to conclude this agreement with
General Motors", commented Fiat Group Chairman Luca di
Montezemolo this evening, as the Italian carmaker gave its
reaction to the deal.
protracted wrangling over the controversial 'put' option is
over, and initial glance reveals a deal that looks very
favourable to Fiat. With cash being of vital importance to
Fiat, this figure overrides all other considerations, and
the 1.55 billion euros, fully payable within 90 days will
help ease the company's cash burn.
be wound up, with the two companies jointly owning its
'intellectual propety' and all assets returned to their
original owner. In a boost for diesel production, GM will
continue to buy the majority of these engines from Fiat,
with most continuing to be built in Italy.
Fiat CEO Sergio Marchionne said that the three Fiat brands:
Fiat, Lancia and Alfa Romeo, could now be split apart, and
he envisions a closer relationship between Alfa Romeo and
Maserati, with the latter likely to be returned to Fiat's
Auto Division. The new position will now allow Lancia to
proceed with mooted new ventures.
released the following detailed statement this evening:
GM agrees to pay
€1.55 billion to terminate the Master Agreement, including
cancellation of the put option, the unwinding of all joint
ventures and return of GM’s 10% equity interest in Fiat Auto
Holdings to Fiat. The settlement will allow GM to continue
to use some of Fiat’s diesel technology and to own a 50%
interest in the Bielsko-Biala (Poland) plant which
manufactures 1.3 litre diesel engines.
The Boards of Directors of Fiat and General Motors have met
today to approve a contract to terminate the Master
Agreement and related Joint Ventures between the two
'The Chairman of Fiat, Luca Cordero di Montezemolo said We
are delighted to have been able to conclude this agreement
with General Motors. While highly beneficial to both Fiat
and GM since 2000, the arrangements had become too confining
for the development of Fiat Auto in today’s market
environment. We now have all the necessary freedom to
develop strategic growth alternatives for Fiat Auto, while
retaining a base on which to build a much more constructive
relationship with GM in the future.