News sources are just starting to percolate with the story about FIAT reportedly planning a non-cash bid for GM’s European assets.
Not much is known as yet and it’s all from “unnamed sources” etc, but the story does include Saab so it’s worthy of some space here:
Italian Fiat SpA will submit a non-cash bid for the acquisition of German Opel in the portfolio of US General Motors by Wednesday (20 May 2009), Dow Jones reports on 18 May quoting a source close to the situation.
Chief executive Sergio Marchionne is expected to meet with German state representatives these days, continuing his efforts over the past four weeks to close a merger deal between Fiat, US Chrysler and GM Europe.
According to the source, Fiat plans to reduce the production of GM European units Opel and Saab, but will not close down any GM plants in Europe.
The source said that Marchionne has contributed personally to the final details of the plan.
Fiat made no comment on the news.
I’m sure more will come out about the composition of the bid during the week.
It’s certainly going to be an interesting two weeks coming up.
Saab are back in court tomorrow. It’ll most likely be a closed hearing and my understanding is that Saab are quite confident they’ll tick all the boxes required to gain their next three month extension.
GM will most likely go into court themselves, possibly before the June 1 deadline, to commence Chapter 11 bankruptcy proceedings.
And there’s this bid by FIAT.
By the end of June, maybe even sooner, the automotive landscape will be almost unrecognisable compared to just six months prior.