Fiat-PSA Considering Major Tie-up
According to the same source, Berlusconi was already analyzing financial requests issued by domestic carmakers, so a potential agreement between the two companies is likely to be approved by the Italian side. In addition, such a deal would make sense on the small car market where both Fiat and PSA launched competitive models on most markets.
Fiat and PSA recorded total sales of 6.2 million units last year, Autonews noted, but both companies were seriously affected this year when the global recession reduced demand for new cars on the majority of European markets.
Fiat sold no less than 1,192,1799 new cars in Western Europe in 2007, which represented a 6.6 percent increased when compared to the previous year. In addition, sales were increased in most emerging markets, with 3.3 percent up in UK and 7.5 percent in Spain. However, Fiat started experiencing a descending sales trend since the first months of this year, with 4 percent decline reported in July. Although Fiat hoped to recover at least 1 percent of its European sales, the financial crisis got even deeper, urging the Italian carmaker to ask for government support and overseas investments.