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