Fiat and General Motors Corp plan to start one-on-one mediation to settle a dispute over whether the Italian industrial group can sell its loss-mired car unit to GM from January 24, Reuters reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The report noted that the two companies have long been at loggerheads as to whether or not the put option is still valid after Fiat sold part of Fiat Auto’s financing arm and recapitalised the auto unit to help it through an ongoing crisis.
Last year, they agreed not to take each other to court over the put for one year and the truce ended on Wednesday, Reuters added.
“This procedure, which will involve direct dialogue between the two CEOs, is designed to allow the parties to resolve the dispute before resorting to other means, including litigation,” Fiat reportedly said in a statement on Wednesday.
Reuters said that, under the original deal between Fiat and GM, signed in 2000, the two chief executives, Sergio Marchionne of Fiat and GM’s Rick Wagoner, must meet within 20 working days from the start of the mediation period. They then have 10 more days to settle the dispute or they can go to court.
Top executives from the two groups met on Tuesday but Fiat told Reuters they had come to no agreement over their financial and industrial links.
A GM spokesman told the news agency there would be no changes in their joint ventures in powertrain development and purchasing.
“The joint ventures are valued by both companies,” he told Reuters.
