PSA and Fiat drive GM out of their capital after failed alliances

PSA and Fiat drive GM out of their capital after failed alliances

Stellantis separates from General Motors! The group that emerged from the merger of PSA and FCA (Fiat Chrysler) announced on Tuesday evening that the American manufacturer was buying its own shares for 920 million euros, or around 2.2 percent of its capital. These arrest warrants were issued to General Motors as part of PSA’s August 2017 acquisition of the automotive business of Opel and Vauxhall. It is a ten-year messy story between PSA and GM that is coming to an end. But also more than twenty years of equally eventful relationship between Fiat and the same American.

It all started in 2000 between Fiat and GM. In response to the great concentration movement sparked by Daimler-Benz’s merger with Chrysler – which was called off – General Motors, then the world’s leading automaker, sealed a strategic and financial alliance with the Italian group in the doldrums. The agreement is unequal from the outset. GM takes a 20% stake in Fiat Auto, the automotive subsidiary of the Turin industrial group. In return, the latter will receive 5.1% of the capital of the American manufacturer. This capital agreement is coupled with a great technology collaboration… for the benefit of GM. Fiat pools its diesels where it then has a clear lead while the American lags behind. The Italian is also supplying the platform for his little Punto to Opel, the American’s German subsidiary, who will be using it for their 2006 Corsa city car! Fiat, bloodlessly, is even offering an option that would allow the American to buy back the remaining equity in his auto business. All experts then foresee the end of Fiat in the hands of the Detroit juggernaut, which then nothing can resist!

Reference: www.challenges.fr

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