G.M. Seeking Stake in Fiat … huh ?

Ken’s Take: Let me be sure that I got this right: Chrysler is bankrupt and in bankruptcy proceedings.  GM is bankrupt but is trying to duck bankruptcy proceedings. Fiat gets a part of Chrysler without paying a dime for it.  GM snags a part of Fiat.  So, one bankrupt company is bailing another, using an Italian auto juggernaut as the conduit.

I must be missing something

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From the NY Times:

Four years after paying $2 billion to extricate itself from a partnership with Fiat, General Motors is seeking a stake in the Italian automaker …

G.M., despite its precarious financial position, now feels it has a bargaining chip with its Latin American unit, and is negotiating with Fiat over what it might get in return. G.M. executives are holding out for at least 30 percent of the Fiat Auto Group.

Fiat and G.M. frequently clashed during their five-year partnership, which began in 2000. Fiat engineers said G.M. was too cautious and unwilling to embrace new technology that would have created cleaner, more fuel-efficient engines. In Germany, meanwhile, Opel engineers became convinced that Fiat didn’t share its focus on detail or quality standards.

Full article:
http://www.nytimes.com/2009/05/07/business/global/07auto.html?scp=1&sq=gm%20fiat&st=cse

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