Fiat Group SpA’s CEO, Sergio Marchionne, has just overseen the purchase of Chrysler and now Fiat is negotiating to purchase potentially all of GM’s holdings in Europe.
If completed, that would make Fiat one of the largest carmakers in the world, and Sergio and his buddies will be laughing all the way to the bank.
Picking up one of the “Not So Big Three” American carmakers – which has some not-so-bad products these days – gets Fiat firmly into the North American car market, and it does it at pennies on the dollar from what it would have cost just a year ago.
And now to consolidate their position in Europe they’ll get Opel, Saab and Vauxhall – and they’ll get those three marques at fire-sale prices because GM is looking to consolidate in North America. Oh, and because GM is out of money and there are no other buyers.
I think the one lesson we can all take from this is that in a downturn the best-run and most forward-looking companies are the ones that stand to profit from the colossal stupidity of others.
Have any doubts about Fiat being forward-looking? Even though the software is by Microsoft, try to find this on an American car: Fiat Eco-Drive