Ford, Fiat in Talks on Small-Car Project

[BMWDave]

Ford, Fiat in Talks on Small-Car Project
Date Posted 09-08-2005

TURIN, Italy ? Ford and Fiat are in "advanced talks" on jointly developing a small car, according to German press reports.

German newspaper Handelsblatt cited "sources close to the negotiations" as saying the two automakers are in talks, with one source saying, "The talks are already far along." Fiat and Ford declined to comment.

Earlier this week, Fiat CEO Sergio Marchionne said he hoped to sign a new industrial partnership by the end of the year. He wants to set up projects to save on development costs. A new SUV will be launched next year based on Suzuki running gear, and the new Punto shares many components with the Opel Corsa.

Earlier, DaimlerChrysler had denied that it was in talks with Fiat.

Ford needs a new small car to replace its long-running European entry model, the Ka. Fiat is planning to launch a new city car, the 500, in 2007, which would be the size of a car that Ford needs. The 500 will be based on the Trepiuno concept car and will be built at a Fiat plant in Poland.

What this means to you: Collaboration on projects is the way to go for the car industry. The trick is to make cars that are distinctive despite sharing a lot of components.

[Laconian]

When Ford thinks "500", they build a mammoth sedan.

When Fiat thinks "500", they build a tiny subcompact.

Will this partnership last?

[Raza]

When Ford thinks "500", they build a mammoth sedan.

When Fiat thinks "500", they build a tiny subcompact.

Will this partnership last?

:D  :D  :D  :D  :D