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Fiat-Opel-Saab, a Threesome Made in Heaven...

Sergio Marchionne, Fiat's CEO supposedly called the Opel deal on Monday as being a "marriage made in Heaven", according to AFP. We would call it a threesome, given that recent rumors claim the Swedish manufacturer Saab might also be targeted by Fiat, as part of their plan to take over GM's assets in Europe.

Even if Saab officials denied a possible deal with Fiat (remember the same happened with Opel), the board heading the Italian manufacturer has outlined the plans they have with the mutant Fiat.

"As part of this process, the group would evaluate several corporate structures, including the potential spin off of Fiat Group Automobiles and the subsequent listing of a new company which combines those activities with the activities of General Motors Europe," the board stated. Mind you Saab is part of the "activities of General Motors Europe".

The new company will become the second largest in the world, positioned just behind Toyota. It should be comprised of Fiat, Opel (together with Vauxhall), Saab and Chrysler. Together, they are to produce around 6 million vehicles and develop 80 billion euros worth of business.

"The objective of these transactions is to ensure the most favourable conditions for the strategic development of the automotive sector." added the board.

The problem is that, as Marchionne himself admitted, "Opel and Fiat build a million cars on the same platform." The result? The workforce must be reduced. "Opel can never earn money at its current size and if you don't earn money, you can't survive," Marchionne was quoted as saying. "I understand the unions' fears - but that's reality," Marchionne was quoted as saying by AP.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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