Fiat have announced a surprise, unscheduled board meeting for December 23rd, as they press forward with plans to impose on GM the right to use the controversial 'put' option.

Yesterday the Financial Times reported that this contested 'put' option, which allows Fiat the right to force 10 percent shareholder General Motors to buy the remaining shares in the Group's auto division it does not already own, is back at the top of Fiat's agenda.

It was due to come into its exercise period last January, although both parties agreed to put this back to January 2005.

Prior to the announcement of this board meeting, just days before Christmas, officially being convened to discuss the preliminary figures of the 2005 budget, the board was planning to meet next Monday, on the eve of a 'steering committee' of Powertrain in Zurich which will see Fiat CEO Sergio Marchionne and GM Chairman and CEO Rick Wagoner come face to face.

The impetus seems to be with Fiat at present, and amongst the swirling rumours of the last couple of days is an underlying confidence that the 'put' option is still a valid entity, which the Italian firm will defend even if it means launching legal action next week.

'Business Week', always an influential source, believes that GM would pay between 600 million and 1.2 billion euros to terminate its obligations towards Fiat, and suggests that the US giant would want any payment to see it freed from any further shareholder commitments to Fiat.

With the Fiat board still planning to get together next week, in an informal capacity, on the eve of the 'steering committee' meeting, and the Angelli family, the Group's biggest shareholders, also meeting, the run up to Christmas should see the company staking out new ground in its turnaround battle.

Iveco signs up to new Chinese joint venture

Fiat has announced that Iveco, its profitable trucks to buses division, has signed an agreement to develop a long-term arrangement with Chinese firm Shanghai Automotive Industry Corporation.
 

This promising new venture is just one of a raft of new agreements announced after a recent tour of China by Fiat Group Chairman Luca di Montezemolo, also visiting in his capacity as Chairman of Confindustria, the Italian trade body, and the President of the Italian republic, Carlo Ciampi.

Iveco will be building on several on-going Chinese operations, which currently see it making light commercial vehicles, transmission systems and buses, in conjunction with several local industrial partners. This new venture is likely to centre around plugging the gaps, with medium and heavy trucks, as well as diesel engine production, being targeted by Iveco's CEO Jose Maria Alapont.

Further strike action looms at Termini Imerese

On Friday, employees at the Termini Imerese plant, who only returned to work on Monday after a three week shut down, plan a four hour strike for this coming Friday.

Each of the two shifts will stop for two hours, in an action called by the regional secretariats of the FIM, FIOM and ULIM unions, as concern grows for the factory's future. The 1,400 workers may also be called out on the 20th December for a further strike, on the eve of the plant's Christmas shut-down.

The union also plans to hold a demonstration this Friday in front of the offices of the Sicilian regional governor, Salvatore Cuffano, and they are expected to demand answers over a proposed 250 million euro investment in the Termini Imerese plant the has not been activated.

Fiat are fighting to reduce overcapacity, this being one of the biggest stumbling blocks to putting the century-old carmaker back on track. With Termini Imerese lacking both strategic importance and the modern facilities of many other factories it is one of the prime candidates for closure when Fiat imposes an inevitable rationalisation of its production facilities. It has already escaped the axe once after a reprieve was granted to it last year.