France's Snecma is tipped to purchase Fiat's aeronautics business Fiat Avio – one of the carmaker's pivotal disposals in its restructuring plan.
Fiat Auto has reported 2002 fourth quarter losses of 200m euros after previous forecasts suggested the struggling carmaker would break even.
Fiat Group and GM executives are to meet this week to discuss further cooperation to bolster the failing Fiat Auto business. According to Friday's Wall Street Journal, Fiat chiefs are likely to ask GM to flesh out chief exec Rick Wagoner's recent statement that the US giant carmaker would help “in any way it can”.
The third Fiat restructuring plan – put forward by Italian financier Emilio Gnutti this week – has a strong “political” element which could help beat off the rival offering by entrepeneur Roberto Colaninno.
Creditor banks' plans to spin off Fiat Auto, together with suggestions of a reduced role for General Motors in a revamped restructuring package, may have gone some way to remove GM jitters – and stave off a potential lawsuit – over the put option.
The original Fiat restructuring plan, hammered out last year with creditor banks, is “taking shape” while entrepeneur Roberto Colaninno's rival plan appears to be on the backburner, according to a Reuters report today.
Fiat has reduced prices across a broad spread of its model ranges and is maintaining 0 per cent finance offers as part of a 2003 sales push.
A new restructuring plan for Fiat Auto championed by one of Italy's leading entrepreneurs could get GM off the hook and satisfy Italian Government demands for the debt-laden carmaker to remain in Italian hands.
Italian PM Silvio Berlusconi has signalled that his Government may eventually have to help Fiat – but says any package must not contravene EU's state aid rules.
Fiat's restructuring pains were made more acute with the recent downgrade of its debt rating to junk bond status by Moody's Investors Service. And the move may herald further stock market falls.
VW chief Berndt Pischetsrieder has denied media suggestions that his company is in direct talks with Fiat Auto management as possible partners in the restructuring deal for the ailing carmaker. But he admitted that the Audi subsidiary was in talks with Maserati about “cooperation”.
New Fiat chief executive Alessandro Barberis has suggested that the struggling carmaker's painful restructuring plan agreed with creditor banks would continue. And in a markedly downbeat speech about the struggling carmaker's medium term future – he said signs of recovery would only come at the end of 2003.
The Fiat board has today confirmed Allessandro Barberis as its new chief executive to replace Gabriele Galateri. The appointment of Mr Barberis came at the end of a tense meeting which formed a showdown between the Government/Mediobanco/Agnelli family axis which is determined to keep Fiat in Italian hands, and the creditor banks which are keen to go ahead with the agreed restructuring plan - which includes 8,000 lay-offs.
Volkswagen has expressed an interest in participating in one Mediobanco-inspired restructuring option for debt-torn Fiat Auto. The German carmaker would like to own a chunk of a hived off Alfa-Romeo/Ferrari grouping.
A threat by Fiat's creditor banks to back out of its agreed purchase of half of Fiat's car financing operations looks to have effectively blocked the appointment of Enrico Bondi as chief executive. It now looks as if Alessandro Barberis, currently Fiat's director general, will be appointed at the Fiat board meeting today.
If the man tipped to replace Fiat's chief executive Gabriele Galateri gets the nod from the company's board on Friday, the appointment could mean the prompt resignation of Fiat chairman Paulo Fresco.
The possibility of a luxury car maker “supergroup” emerging from the ashes of Fiat Auto – with VW involvement – may be the preferred option of the bank which the Italian Government had hoped would take over the ailing carmaker. But that plan, increasingly gaining media attention, was overshadowed by yesterday's shock resignation of Fiat Group chief executive Gabriele Galateri.
Fiat has now notified 5,600 workers that they are to be laid off for up to a year as part of the company's emergency restructuring in the face of its burgeoning debt. This followed the breakdown yesterday of the latest talks between government and trade union officials.
Fiat is set to lay off 5,600 workers after the Italian Government failed to broker an alternative to the ailing carmaker's redundancy plan. The Government is now likely to approve the redundancy plan next week.
Italy's industry minister Antonio Marzano told Fiat executives that Fiat Auto needed deep and definitive restructuring if it is to meet its aim of slashing net debt to $3.6bn by 2003. Marzano's comments were made in this week's preliminary meeting to discuss approval of Fiat's restructuring plan to lay off more than 8,000 workers for at least a year.
