Marchionne: The party is over

[toby2449]

thats the headline in Automotive News Europe's "Talk from the Top", where Fiat's much respected CEO basically talks of doom & gloom in the motor industry.

I've read many an article on Marchionne, as an owner of a small number of Fiat Group shares, & as an owner of Fiats, Alfa & Lancia cars i hang on his every word to tell me whats happening to my beloved Fiat Auto.

So, the thought of 6 giant carmakers troubles me. Marchionne believes it will happen, it must happen, probably over the next 12-24 months, & that anyone who sells under 5.5 million units per year (of which Fiat is firmly one) cannot survive if the world enonomy continues to tumble as it has of late.

Question is, who would Fiat get into bed with?  Apparently the 3 marques most at risk in Europe are BMW, Fiat & PSA.

Desparetly i want Fiat to remain independent, but things being the way the are,i doubt that'll happen. Talks of Fiat maybe going into an alliance with Ford or VW are already out there, it'll be interesting to see what happens.

However looking at some other marques, Fiat is still in good shape!

One, if not two of America's Big-3 will probably go to the wall, my money is on Chrysler. Detroit has gone begging to Washington for $35b, many suggest it'll take closer to $100b to bail them out, & indeed some are suggesting a deal closer to $15b is on the cards.

Look at Saab & Volvo, both companies on the verge of being sold or closed. Volvo certainly in the better position of the two, worth maybe $2b, Saab worth $100m at most.

Interesting times ahead indeed...