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Over the last two
years, the Italian car company Fiat transformed itself from a relatively small auto
manufacturer into a global participant in the auto
industry. Fiat will soon take over Chrysler. It is
maneuvering to acquire a large portion of General
Motors. |
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Fiat, in 2005,
was struggling to overcome ongoing losses. It was
working survive following the death of its chairman,
Gianni Agnelli. He had ruled for decades as a feudal
lord. Fiat's future was so dark that General Motors
-- afraid it might be burdened with the company's
problems -- paid Fiat $2 billion to dissolve their
partnership. |
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Today under a chief
executive with no prior experience in the car
business, Fiat's finances have stabilized. Fiat is
pursuing a goal most Italians would have laughed at
a few months ago: To build itself into the
third-largest auto manufacturer the world. |
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If successful, Fiat
will be third after Toyota and Volkswagen. It will
be ahead of the fading GM. Without spending any of
its own money, Fiat is stitching together a plan to
take over Chrysler. Fiat is expected to acquire a
20% equity position that will potentially result in
majority ownership in some years. |
Fiat is also
negotiating with General Motors. It wants to acquire
GM's
European and Latin American businesses. |
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If successful, Fiat
will oversee a new auto empire with the capacity to
build nearly 6 million cars per year. That is triple
what Fiat produced during 2008. |
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Fiat's
prospect is leading to an increase in the Italians'
national pride. Many Italians are shocked that the
US White House is counting on Fiat to save Chrysler.
Italians are also in awe of the idea that Turin,
with its 1 million people situated near the beauty
of the Alps, might positively impact Italy's
long-term economic decline and become home to a
global auto company. |
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Good night, America. |