Fiat Looks To Renault-Nissan Merger As Inspiration For Dealings With Chrysler

A few years ago, Fiat Auto struggled with the same kind of challenges that Chrysler LLC faces now. Its rivals expected the Italian automaker to collapse. Auto analysts said Fiat's quality lapses, its lopsided model range, its reliance on its home market and mounting losses had caught up finally with the company.

When Fiat SpA hired Sergio Marchionne, an Italian-Canadian businessman with scarcely any automotive experience, to run the group, Fiat Auto's prospects seemed gloomy indeed.

"Fiat was on the verge of collapse when he took over in 2004," said Pierluigi Bellini, an auto analyst with IHS Global Insight's offices in Milan. But "he did a very good job in a desperate situation."

In the cutthroat Western European auto market, Fiat has boosted its share to 8.2 percent from 6.6 percent in 2004, and it is a consistently profitable company now.

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david999 - 1/21/2009 2:47:20 PM

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Nissan is doing ok?

222max - 1/21/2009 3:11:00 PM

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Nissan is taking a beating just like everyone else in the industry right now but they are still in the black and have money in the reserves. Before the downturn they were among the most profitable car makers around.

LauderdaleDriver - 1/22/2009 1:00:00 AM

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Of course, Nissan went belly up during the Asian debt crisis, and had to sell itself to partially state-owned Renault to survive......oh, and by the way.... did you read that the French government has petitioned Brussels to allow it to totally nationalize Renault (and by extention, Nissan/Infiniti)?

Nissan is hardly a healthy company, don't kid yourself. Renault/Nissan is a basket case, just like the rest of them.

BarackBush - 1/22/2009 1:17:30 AM

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Where is Chuck? lol

Type707 - 1/22/2009 2:45:45 AM

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It seems that Fiat is trying to take/merge with every automaker. Hostile takeover perhaps?