Monday, February 14, 2005

Fiat 2 (billion) - GM 0

In a disappointing turn of events, GM has agreed to pay Fiat $2 billion dollars to end their partnership and cancel the put option that would have allowed Fiat to force a sale of its financially troubled automotive unit to GM. I have to say that I am a little bummed out. I wanted to see a forced sale, or at least a long litigation battle, being a lawyer and all. But no such luck. GM walks away with nothing but a lighter wallet and a hurt ego. When you examine the track record of American/Italian cooperation (LaForza, TC by Maserati, Allante), you quickly realize that this relationship was doomed from the start. But now that this embarrassing situation is over, motorists can only hope that GM gets revenge the old-fashioned GT 40 way. Go for it GM - build an icon!


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