General Motors Corp., Detroit, and Fiat, Turin, Italy, are joining forces in a venture under which GM will get a 20% equity stake in the Italian carmaker's Fiat Auto arm, while Fiat gets 5.1% of GM common stock, estimated by the two at $2.4 billion. Fiat said it will compete with GM in Europe, but look for marketing synergies in the U.S. to bring back its Alfa-Romeo cars. The announcement ends months of news reports that Fiat was working on a deal with GM, Ford Motor Co. or DaimlerChrysler. Fiat said the GM deal will improve its shareholder value.
Copyright March 2000, Crain Communications Inc.