If the negotiations are to work out well this month, we might have to change the name of Fiat, reports the Irish TImes. Why? Well, people of a certain age know only too well that Fiat (Fabbrica Italiana Automobili Torino) colloquially used to stand for “Fix It Again, Tony”.
There was a time when motorists, perhaps unfairly, perceived Fiats as not always 100% reliable. If current negotiations between Fiat, Opel and the German government come to fruition, then the Turin-based car-maker may be transformed into a new European giant, comprising Fiat and Opel – not to mention Chrysler.
The Opel negotiations, come just days after Fiat agreed a deal with Chrysler which saw it take an initial 20% stake in the crisis-ridden US carmaker… Little wonder, then, that some of us feel that Fiat ought to consider changing its name to “Fias” (Fix It Again, Sergio).
The Sergio in question, of course, is Fiat Auto chief executive, 56-year-old Sergio Marchionne, the man responsible for what analysts consider to be one of the most remarkable turnarounds in the auto industry…
Marchionne likes to point out that Fiat Auto ended 2008 with a $1 billion (€747 million) profit from the sales of 2.2 million cars, more than GM made from the sale of eight million cars…
The basic theory behind the Chrysler deal is the hope that the US car-maker can be rejuvenated by a marriage to Fiat that would see it adopt the Italian car-maker’s expertise and know-how in the production of smaller, fuel-efficient cars. In return, and for no cash injection into Chrysler, Fiat gets a valuable foothold in the US marketplace, via both Chrysler plants and the company’s nationwide dealership network.
The basic theory behind the Opel deal is Marchionne’s long-held view that, on its own, Fiat could not survive. He has predicted that in two years’ time, there will be only six global car-makers still standing.
Sergio Marchionne, Fiat Auto chief executive
