Fiat's senior management, Italian government officials, unions and financial analysts have all been giving their opinion on the break up with GM. With a 1.55 billion euro pay-off and freedom from the restrictive terms of their agreement with the American carmaker, Fiat are now free to pursue a new path, and strike up fresh alliances.

LUCA DI MONTEZEMOLO - 'It's the challenge of a country, of a company, of a group'

"Fiat is once again all Italian," the Fiat Group Chairman Luca Cordero di Montezemolo commented during an interview yesterday with the RAI radio station. "We are an extraordinary country, we just have to have faith, and I think this signal from Fiat, Italy's biggest company, is important." He added that, "the money from GM will be used, first of all to bring Fiat's financial situation within acceptable limits, but then to look ahead." He concluded, "It's the challenge of a country, of a company, of a group, which has shown it can make beautiful cars."

MARCHIONNE - 'LOOKING FOR AGREEMENTS WITH OTHER PARTNERS'

Meanwhile Fiat CEO Sergio Marchionne, who led the negociations of the deal, which is generally regarded as very favourable to Fiat, said in an interview with La Stampa, "for five years Fiat gave up its own strategic autonomy and the possibility of looking for agreements with other partners too," he concluded.

GOVERNMENT - 'follow the follow the road of partnerships'

Italian Deputy Production Minister Adolfo Urso said that he was "pleased" with the terms of the settlement, and commented that "new and interesting prospects awaited Fiat, with the backing of the institutions". He added that Fiat should invest in "innovation and research and development, the main backbone of strategic alliances, and that senior management should focus on emerging markets such as China and India to become competitive." He concluded, "Fiat must follow the follow the road of partnerships with other well-established car makers and set up joint alliances, particularly in the East."

Industry Minister Antonio Marzano, who is this week attending an industrial expo in New Delhi, headed by Carlo Ciampi, the Italian President, commented that "it is now time to strive for a relaunch of the industry". Adding that "there is now greater room for manoeuvre."

MAIN UNIONS - 'A POSITIVE STEP'

Meanwhile the unions reacted with optimism, calling the ending of the GM-Fiat agreement a "positive step". The Fim, Fiom and Ulim metalworker unions stated, "now we need commitment, will, ideas and projects to revive car making in Italy."

They added that Fiat had been freed from "a dark partner" and called for a new engine to be built at the Mirafiori and Termoli plants, as well as new public capital to be made available for investment, over and above the current state sponsored redundancy fund.

They requested immediate top-level meetings with Fiat's senior management figures, government ministers and the group of banks that have a major say in the firm's fortunes, to clarify the position as it now stands and to define future roles.

They also announced a four hour strike for this coming Friday, with a demonstration to take place in front of Fiat's Turin headquarters, and a national rally in Rome on 11th March.

ANALYSTS - 'Fiat is starting a new chapter'

We have a highly welcome cash injection which most assuredly will be eaten up shortly, and then we are back to discussing the original business, including overcapacity at Fiat's Italian car plants," commented Patrick Juchemich, senior auto analyst at the Oppenheim bank.

Meanwhile Cedric Besnard, an auto analyst with the JP Morgan institution added, "With the GM deal out of the way, Fiat is starting a new chapter. They have to restructure Fiat Auto and fast."