Fiat and Mazda will build a small convertible together. Fiat is the controlling shareholder of Chrysler. The deal is an example of how large car companies which face slow sales in Europe and slowing sales in China, have started to band together to save costs.
GM (NYSE: GM) and Peugeot plan to jointly operate production facilities in Europe. GM’s Opel division is bleeding money in the region. Peugeot is one of the most troubled European car companies financially. GM has also made in investment in Peugeot. And, trouble is probably what binds Fiat and Mazda together. Fiat’s sales in Europe have collapsed. Mazda’s sales run well behind Japanese rivals Toyota (NYSE: TM), Honda (NYSE: HMC), and Nissan. Nissan already has a close alliance with Renault.
Fiat and Mazda don’t have the capacity to easily develop large numbers of new models on their own.
Douglas A. McIntyre
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
