Fiat was always in trouble under GM. At the time, all of Fiat’s brands were in an identity crisis. Italians had no national loyalty to the cars because they knew Uncle Sam was really holding the pure strings, and the rest of Europe would not let beautiful looks forgive abysmal build quality. But once General Motors left town, things became clearer.
By being abandoned and left for dead, Fiat knew it had to pull itself up and show the world that the Italians had a contribution to the automotive community. By giving them their company back, General Motors also gave the Italians their national pride back. The $2 billion parting gift now meant Fiat had capital to develop new cars. It used the new money to insure quality on the Panda and Grande Punto. That success carried into the Bravo and allowed Fiat to purge its past for the popular 500.
The group has been revitalized from Lancia to Alfa Romeo. Design has always been a hallmark of the Italian brands, but now there’s something extra – passion. Oh yeah, and the interior no longer feels like it was made from graham crackers.
Unfortunately for GM, after all the work it put into Fiat, it only made a stronger competitor. In fact Fiat may even lease unused factory space from GM’s cross-town rival Chrysler. General Motors restored a great automotive icon. It paid for the new Fiat, but it doesn’t get to reap the benefits.
Shame on you GM; thank you GM.