Blog: Dave LeggettFiat to adopt PSA's business model?

Dave Leggett | 25 February 2005

What is to be the fate of Fiat Auto? It has bought some breathing space, sure, but a strategy needs to be found. Could it just borrow from PSA's selective collaborations business model? PSA has done okay with it and has an impressive list of alliances with other makers that have enabled it to save cost and stay independent. Fiat Auto could certainly give it a go and its starting position isn't too bad in the sense that it has a youngish range of platforms and powertrains at its disposal.

If it doesn't come together though, I wouldn't mind betting that an Asian firm might well be interested in an alliance with Fiat Auto in order to break into Europe. If the SAIC-Rover deal isn't signed and sealed soon, SAIC could well be having a look around at alternatives to MG Rover.

By the way, Fiat results are out on Monday (28th Feb).

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