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Fiat Squashes Speculation of Buying into Mazda, but will Increase Chrysler Ownership

Alfa Romeo Spider

Last week, we reported that Fiat was open to allowing Mazda to use U.S.-based Chrysler factories to manufacture U.S.-bound Mazda models. Before that, Fiat and Mazda officially announced a partnership in building the MX5 Miata and Alfa Romeo Spider . These two announcements brought about a lot of speculation of Fiat taking the same approach that Ford did, by buying into the struggling, but slowly recovering, Mazda.

After hearing plenty of these rumors, Fiat Chairman, John Elkann, had enough and announced at a shareholder meeting that Fiat is not interested in acquiring any percentage of Mazda Mazda in the future. Fiat does plan on adding a Japanese partner in the future to help expand its global reach, but there is no mention of what companies Fiat is considering.

We would not be surprised to find out that this is simply a rouge to not tip its hand too early. It only makes sense for the two to partner up in a larger sense, as Mazda needs some help getting over the recovery hump and Fiat needs a Japanese partner. It would be a win-win situation, so we’ll see if Fiat’s tune changes after testing out Mazda’s abilities with the Mazda Miata-Alfa Romeo Spider production deal.

Fiat is planning a little bit of expansion soon though. In July 2012, Fiat is planning to expand its ownership in Chrysler by an additional 3 percent, bringing its total ownership to over 60 percent. Over the course of time, Fiat plans to jump its overall Chrysler ownership to 100 percent, giving it complete control over the recovering automaker’s operations and profit.

It definitely looks like Fiat is on the right track here so far. We will keep you updated as its expansion continues.



9 comments:

I smell a great competition ahead with these three big companies. I would love to see those three making their own schemes to be on top.

Either way, Chrysler would be the winner. So I think there will be a great changes when Chrysler own a company.

Using Chrysler’s factories in building Mazda cars is an advantage for Mazda especially if Chrysler’s engineers will be working for it.

If Mazda is wants to compete against Chrysler, then their management should think about it carefully. Even if Fiat is on their side, the chance of surpassing Chrysler is still slim for them.

Chrysler has made so many top-notched models that no other companies could ever produce. Even Mazda. They surely made some good car models but they are quite far away from what Chrysler has done.

Mazda has put out some of the best car models on the last few years. But they surely not comparable to what Chrysler has done.

I can’t blame them at all; why should they waste on something that’s clearly not going to be much consumed?

Mazda just isn’t fitted so it’s better to cut wrong assumptions early.

It was unfortunate for Mazda, but If I were Fiat, I’d certainly decide upon this too. Having known the wants of the target is an advantage for this transaction.

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