http://www.detnews.com/apps/pbcs.dll/artic.../601300407/1148

Ouch. That's gotta be painful.

Earlier this year GM paid Fiat $3 billion so that they would not have to buy them, thinking that the company would just be a big money pit. But now they are making money.

Wouldn't the biggest chunk of their profit be from the $2b that GM handed them? What will they do for an encore? Sign a deal with Ford and then sucker them into a $2b gift?

It's a shame, but they wouldn't be where they are today without the cash infusion from GM. Though it looks like that's what they needed to get back on the rise.

Wouldn't the biggest chunk of their profit be from the $2b that GM handed them?  What will they do for an encore?  Sign a deal with Ford and then sucker them into a $2b gift?

what about the money ford gave them?

If GM would use the Fiat deisel tech. they bought for 3 bil. I wouldn't mind the investment at all. Since GM only offers one deisel engine in the US I pretty much call their end of the bargan a waste.

If GM would use the Fiat deisel tech. they bought for 3 bil. I wouldn't mind the investment at all.  Since GM only offers one deisel engine in the US I pretty much call their end of the bargan a waste.

and to note thats a izusu dsl motor... not fiat...

If GM would use the Fiat deisel tech. they bought for 3 bil. I wouldn't mind the investment at all.  Since GM only offers one deisel engine in the US I pretty much call their end of the bargan a waste.

GM sells vehicles in other countries as well...countries where diesel engines are very important.

Heck, I'd start making money too if you handed me $2billion

Typical GM bad luck.

No, typical GM stupidity. Nothing new here unfortunately.

and to note thats a izusu dsl motor... not fiat...

That was exactly my point...

GM doesn't use any of the Fiat diesel tech. in the US. Period. If they would, they would corner the market with diesel/electric hybrids!!!

Don't they use Fiat diesel tech. in Europe?

This is another case where deals were made at GM that *seemed* like a good idea at the time but came with problems later. I don't know the details of the original contract (which I think is where the real issue started.) Why would you sign a deal that forced any kind of payment later? I hope whomever was responsible for the original deal is out in the cold with none of the famous GM pension.

Plus, to the point of a few of the posts here, if you just had a pile of cash handed to you I'd hope you'd be able to turn a profit for a while. Even though I love Italy as a cultural center it is also a place rife with corruption. Ya think maybe this had something to do with the sudden profit?

http://www.detnews.com/apps/pbcs.dll/artic.../601300407/1148

Ouch.  That's gotta be painful.

Earlier this year GM paid Fiat $3 billion so that they would not have to buy them, thinking that the company would just be a big money pit.  But now they are making money.

The problem with Fiat was an unwillingness to follow through. The original deal might not have been a good idea, but once they signed it they should have made it work in some fashion. DCX decided that Nissan would be a money pit. Then Renault refloated it. Not that Fiat's problems were the same as Nissans, but the right people with the right approach could fix Fiat.

Of course, the same could be said of GM itself.