Fiat S.p.A. may enter into an alliance with another carmaker before launching any initial public offering of its Chrysler unit in 2013, CEO Sergio Marchionne. Any alliance would result into a creation of another European car company that would rival Volkswagern AG in size, Marchionne added. The possible alliance is part of Fiat's move to achieve its 2014 sales target of 6 million vehicles.
Marchionne dispelled reports by Italian daily Il Corriere della Sera that it has forged an alliance with Peugeot SA's CEO, Philippe Varin, who he had dinner with Monday night. The Fiat/Chrysler CEO also revealed that an alliance with Opel was off the table.
Peugeot, An Italian analyst said a Fiat/Peugeot alliance could help reduce costs for both companies, but would hit a bump since a consolidation would mean plant closures in Italy and France. [source: Reuters]