Projo Cars Blog

Fiat could come out of the current debacle not only with a strong foothold in North America with the acquisition of Chrysler's operations but also with a stronger position in Europe with the possible purchase of General Motors' Opel unit in Germany.

Reuters reports GM is mulling the sale of Opel, possibly to Fiat.

Along with GM's announcement that it plans to idle most of their plants for up to nine weeks this summer due to reduced demand and bulging dealer lots, it's another sad testament to the decline of the once great company.

Such dramatic steps just add more organizational and logistical disruption on a company that is reeling from the massive downturn in its fortunes and the basting it has taken in terms of public opinion - let alone the recent forced ousting of its chairman, Rick Wagoner.

In addition, April sales figures are just around the corner and it is hard to imagine they will be encouraging - the company would not be mothballing production lines if it expected them to be so.

Against this dismal background, it is hard to imagine the company will not be forced into bankruptcy by President Obama's Automotive Task Force in order to reorganize it properly.

One day the story about the demise of GM will be written and the reasons exposed. But I find it hard not to lay much of the blame at the well-polished feet of the arrogant, business school-style management in Detroit.

Meanwhile, Fiat, under the dynamic leadership of Sergio Marchionne, seems to be nimbly moving in to take full advantage of Detroit's travails. Ironic, considering GM once had a stake in the Italian company but in 2005 opted out of a possible takeover.

- Peter C.T. Elsworth

 Tags  Chrysler Fiat General Motors

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