It’ll be interesting to see how this one plays out….
A German newspaper, Frankfurter Allgemeine Zeitung, has published what it claims is a 100+ page internal report from Fiat, one which is rather quizically called “Operation Football”.
The plan was written in English (so that’s a little suspicious right from the beginning) and it reportedly shows how Fiat plan to benefit from the potential synergies they might gain from acquiring GM Europe.
This is from Reuters:
Italian carmaker Fiat SpA would cut some 18,000 jobs and 10 assembly and component sites at a combined Fiat/Opel company including both Vauxhall plants in England and two Fiat factories in Italy, a German newspaper reported…..
….The paper reports Fiat wants to gain access on the cheap to GM’s platforms on which it builds the Opel Corsa subcompact, the Astra compact and Insignia mid-size car. A further key aspect of the plan is acquiring GM’s Latin America operations.
According to sources on the Opel supervisory board, Marchionne also plans to put an end to GM’s Saab brand and its own Lancia brand over the longer term.
Fiat deny the report:
Fiat issued a statement saying the information in the report “does not come from Fiat and is not part of any plan prepared by the company.”
The jury is so way out on this one that we won’t know what’s going on here for some time to come, but the report does make a lot of sense on one level.
Fiat would definitely have to consolidate their operations once this merger was signed off. It’s the only way they can make it work. Otherwise, they’d have too much capacity and too many brands to manage.
Get the tech expertise out of those brands and eliminate unwanted capacity.
Bottom line, this report may or may not be true, but the truth within it may remain even if it’s proven to be false.