between General Motors and Fiat has finally been dissolved
this afternoon, GM have released this statement:
General Motors Corp and Fiat S.p.A. today announced they
have executed an agreement to terminate the Master Agreement
between the companies and realign their industrial
relationships. The boards of directors of both GM and Fiat
have approved the settlement agreement.
GM will acquire
certain strategic assets from Fiat to assure the future
availability of a full range of diesel engines for vehicles
produced by GM's global operations.
"GM and Fiat
have agreed that it is in the best interest of their
companies and shareholders to terminate the Master
Agreement," said GM Chairman and Chief Executive Officer
Rick Wagoner. "GM has derived significant benefits from its
association with Fiat Auto, including the accelerated
development of diesel engines, cost savings and the joint
development of certain vehicle programs. With this
settlement, our overall financial returns will have been
"We believe that we have reached a fair and equitable
agreement that enables both companies to maintain a high
level of synergy savings, but in a more focused approach
that gives each of us more freedom to act in today's
competitive environment," Wagoner said.
Under terms of
the agreement, GM will pay Fiat €1.55 billion to terminate
the Master Agreement (including the put option) and to
acquire an interest in key strategic diesel engine assets,
and other important rights with respect to diesel engine
technology and know-how.