Two’s a Party, Three’s A Crowd. Fiat Seeks Ownership of GM’s European Operations
In a bid to become the world’s largest automaker, Fiat is extending its purchase of Chrysler to include General Motors’ European operations. The merger would create a firm with $100 Billion in annual revenue, thats right, one-tenth of a trillion dollars each and every year.
Details are still thin but the merger would include only GM’s European operations and include none of the existing business here in the United States. Interestingly enough, Fiat is considering spinning off its current operations to make room for the new endeavor.
Say what?
Yeah that’s right, Fiat is willing to sell or spin off its existing businesses to begin anew with two firms who are bankrupt. Granted, General Motors overseas business is very strong with it diesel cars some of the best selling in the world. Even still, its still losing money but has a strong brand name in affordable and efficient vehicles.
This is truly scary. The solution to a failed American business is to sell it and form an international entity. I’m worried about the future of business operations in America, what great innovation American workers have brought about and now its all bought and sold on the international auction block.
At this point it is unknown what GM will receive in return, but shareholders are likely to be happy with the outcome. Fiat practically stole Chrysler and the unions took the other half. We’ll have to see how this develops and how this may benefit the poor GM shareholders.
