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Article: Fiat would be risky purchase for GM, analysts say.(Fiat Auto, General Motors)(Brief Article)
- Article from:
- Automotive News
- Article date:
- June 3, 2002
- Author:
CopyrightCOPYRIGHT 2002 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Financial analysts see little upside for General Motors if it buys all of Fiat Auto S.p.A.
They see possible long-term benefits from integrating the companies. But GM risks becoming bogged down by simultaneously trying to fix Fiat, GM's money-losing Adam Opel AG and the newly acquired automotive operations of Daewoo Motor Co.
``It's a high-risk, high-reward proposition, even more so than the other (GM) alliance partnerships,'' said John Casesa, analyst for Merrill Lynch in New York.
GM bought 20 percent of Fiat Auto S.p.A., a subsidiary of Fiat S.p.A., in 2000. Beginning in January 2004, Fiat can require GM to buy the rest of Fiat Auto. Fiat ...