Fiat wants more cost savings

6 May 2002: Fiat is to seek 4.5bn euros in savings over the next three years after accelerating plans for restructuring and disposals. The move may involve moving some car assembly operations from Italy to Poland and Turkey

Fiat needs to deal with continuing losses in the core Fiat Auto division and the group's 6.5bn euros of debt. The group has an option to sell 80 percent of the division to General Motors in 2004 - GM paid $2.4 billion for an initial 20 per cent stake two years ago - but a company spokesman says nobody wants this and the losses would not force the company to sell Fiat Auto.

Fiat may also be considering a part-flotation of Ferrari, and some of its industrial operations. Moving roduction of Punto from Turin to lower-cost factories in central and eastern Europe may also be on the cards.

May 2002