"No I'm not here to see the Cavalier..."

[Lawrence.Gowin@domain.elided]

Latest Business (Reuters) </business/list.tmpl?cat=0280>
Fiat And General Motors Forge Alliance  		
Reuters Mar 13 2000 2:56PM ET 	 <<...>> 	
TURIN (Reuters) - Italy's Fiat and the world's top carmaker General Motors
on Monday unveiled an alliance backed with cross-shareholdings in a bid to
keep abreast of the wave of global consolidation. 
The deal, elbowing aside a bid for Italy's industrial dynasty from
DaimlerChrysler, calls for joint ventures in engines and components and
especially targets the markets where both carmakers operate, Europe and
Latin America. The two carmakers expect to save up to $2 billion a year from
the alliance. 
Under the accord, GM will acquire a 20 percent stake in Fiat Auto in
exchange for $2.4 billion in GM common stock. Fiat will take a stake of some
5.1 percent in the Detroit giant, becoming one of its largest single
shareholders. 
``Automaking today is truly a global affair,'' GM Chairman and CEO John
Smith told a news conference at the historic Turin headquarters where Fiat
last year celebrated its centenary. 
``The challenges are great but the opportunities are almost timeless and
limitless,'' Smith said. 
Fiat Chairman Paolo Fresco told the news conference, beamed live to GM's
headquarters in Detroit, the deal would enable Fiat's recently loss-making
car division to compete better. 
``We are offering our shareholders further confirmation of the fact we want
to grow and keep our fate, our destiny, under control,'' Fresco said. 
Industry sources said the deal hammered out on Sunday night followed what
was effectively an ``auction,'' carried out in secret over several months
and pitting GM against DaimlerChrysler and BMW, among others. 
DaimlerChrysler had offered to buy Fiat Auto outright in shares and cash.
But the Agnelli family, headed by patriarch Gianni who turned 79 on Sunday,
had battled to maintain control of one of Europe's most prominent
family-held empires. 
>From the AOL Ticker...
The deal will see Fiat's smart Alfa Romeo saloon brand reintroduced to the
United States, where the Italian group has been out of the picture for
several years. 
Ferrari and Maserati, the world-famous sports cars which Fiat owns under a
separate division, are not part of the deal.


Lawrence Gowin
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