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2/13/2005

GM, Fiat Put Option — Over and Done

Filed under: — GM Guy @ 10:32 am

Oh well! My dreams of going down to my local Saab or Cadillac dealer and picking up a new Alfa Brea or Maserati Quattroporte will remain just that, dreams. It was announced today that Fiat and GM came to an agreement that dissolved the “put” option that would have forced General Motors to buy the automotive part of the Fiat companies. Reuters reports:

MILAN (Reuters) - General Motors Corp. will pay Fiat 1.55 billion euros ($1.99 billion) in a deal to drop an option which would have forced the U.S. giant to buy the Italian firm’s loss-making car unit, GM said in a statement.

In the statement, GM said both the Fiat-GM Powertrain and the purchasing joint ventures would be dissolved.

GM will also acquire an interest in “key strategic diesel engine assets and other important rights” through the deal.

GM will return its 10 percent stake in Fiat Auto. … “

After all those 0 percent auto loans, dealer cash allowances, consumer rebates and all, what’s an easy 2 billon dollars between friends anyway?

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