Fiat, Gm May Tie Up In India Too

General Motors India and Fiat India Auto are planning to enter into a strategic tie up in the country, on the lines of the one their parent companies signed last month.

The deal between the General Motors Corporation and Fiat Auto SPA envisages significant synergy in the areas of material cost reductions, leveraging of each group's powertrain activities, efficiency in the financial service operations and platform sharing.

According to informed sources, top officials of both the companies, including Gianni Ravina, managing director, Fiat India Auto, met in Singapore last week to discuss the possibilities in India.

However, Richard Swando, president and managing director, General Motors India, could not attend the meet as he was away at Detroit.

 

A General Motors India spokesperson, while confirming the meeting, said, "We are definitely looking at the possibilities and avenues in India, which are thrown open as a result of the global agreement."

Further, should GM take over Daewoo, the GM-Fiat combine also plans to include Daewoo's Indian operations into its scheme of things.

When contacted, Ravina refrained from making any comments on the issue. However, according to sources, a final agreement was expected by September, by which time the fate of Daewoo's automotive operations worldwide will also be clear.

Sources based in Turin, Fiat Auto's global headquarters, also confirmed that Fiat Auto and GM are now busy working towards creating an operational synergy worldwide.

According to the deal struck by the two auto giants last month, Fiat Auto and General Motors Corporation will remain independent from each other and will continue to compete in different markets globally.

GM is set to acquire a 20 per cent stake in Fiat Auto in exchange for $2.4 billion in GM common stock. With this Fiat's holding in GM will amount to approximately 5.1 per cent.

Meanwhile, sources said the Fiat Siena station wagon launch, due for next month, might be postponed further. Fiat, however, didn't reveal the exact timing of the launch.

According to sources the station wagon will be launched in three versions and will be priced between Rs 7-8 lakh.

Fiat also has plans to open a cutting-edge weld shop in a few months from now.