Fiat & Daimler Chrysler?

[Bernie & Diana Bennett <bennetts@domain.elided>]

Digesti:
Just found this in my news service (rp-online direct - German News -
Oktober 19th 1999
                              Volume 02 - Edition 127 ) from Germany:

Daimler-Chrysler Enters Negotiations with Peugeot and Fiat

           Stuttgart-Based Company Aims at Decisive Role

           Duesseldorf - 18 October (rpo.) According to the trade paper
"Handelsblatt", Daimler-Chrysler
           has entered negotiations with car manufacturers Peugeot
(France) and Fiat (Italy) about a close
           cooperation, maybe up to the level of capital interlocking.
"A surprise may be possible," a
           Daimler manager commented on the progress when asked by the
Duesseldorf-based trade
           paper.

           The Stuttgart-based Daimler-Chrysler is expecting fresh input
for its projected series of
           compact cars. Suggestions for a cooperation ranged between
the exchange of parts up to the
           interlocking of capitalm, the "Handelsblatt" reported quoting
board committee sources.
           Negotiations could lead to a "decisive role" for
Daimler-Chrysler to play in the future of Peugeot
           SA or Fiat SpA. A takeover of one of both companies seemed
less likely.

           A preliminary decision on the introduction of a compact car
could be made until the board
           committee meeting on December 10th, the paper reports.
Daimler-Chrysler has already
           expressed its preference for a capital interlocking because
the mere supply with parts could
           make Daimler-Chrysler overly dependant on a possible
alliance. The background for the
           projected compact car series is the need for the company to
bring down the gas consumption of
           its model fleet. This goal could not be met simply by
introducing a luxury car with
           below-average gas consumption.

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Best Wishes,
Bernie Bennett

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