As Sergio Marchionne gears up to meet his GM counterpart Rick Wagoner within the next few days,  the Fiat CEO offers a glimpse of the future, including the announcement to a new Lancia Delta in a far reaching presentational document.

Despite this bold strategy, private briefings from Fiat's top management over the last few days, following on the back of the weekend presentation to the leading banks by Marchionne, are raising the possibility that the group may face a further break-up as they struggle to raise more cash in order to keep the famous carmaker afloat.

At the same time the Fiat CEO paints a picture of Fiat Auto finally turning the corner, with operating profits expected in 2006, after they ride out what promises to be an environment of tough market conditions this year. In a very upbeat mood, as ever, he commented, "I'm ever optimistic, Fiat will pull through."

Last window of opportunity for Fiat and GM to 'amicably' resolve the disputed 'put' option approaches

Under the terms laid down by the controversial 'put' option, Marchionne and Wagoner will be required to meet up before the end of the month, after which, if no agreement is reached, the dispute will be resolved by a specially-formed New York tribunal. As the stakes continued to rise, GM last week wrote down the value of their 10 percent stake in Fiat Auto from 220 million dollars to zero.

'I believe Sergio Marchionne will be in North America between the 20th and 21st of January to discuss things with GM," a government source privately told Reuters yesterday. Marchionne, had in fact been due to meet Industry Minister Antonio Marzano on Friday, but the Fiat CEO has pulled out of this meeting, which has now been rescheduled for tomorrow instead, and with Vice-President John Elkann standing for Marchionne.

Asked today about these dates today, after a meeting with the CEO of Capitalia, one of the eight banks who lent the automaker 3 billion euros back in 2002, Marchionne told the assembled reporters "I can't say anything, but tonight I'm going back to Turin."

Fiat Group break even 'achievable' for 2004

In a detailed presentation, Sergio Marchionne reiterated that a Group breakeven target was 'achievable' for 2004, while the struggling Auto Division was on course to make a small operating loss in 2005, before pulling back in 2006, with an operating profit coupled to positive cashflows.

Iveco and Lancia to be put up for sale?

The Lancia brand was last year saved from the impending axe, reportedly, only after Sergio Marchionne personally intervened to override the decision of Fiat Auto Division boss, Herbert Demel. Now, although the storm clouds have hardly started to clear, rumour is once more circulating that the century old name is again under threat, especially as Marchionne talked in his presentation of  further 'disposals'.
 

Fiat will have to generate substantial cash over the next two years to fund its on-going re-launch, and this could come from an asset disposal programme, that has seen the Lancia brand, along with the bus to truck division Iveco, coming into the frame. Milano Finanza suggested this week that around 2 billion euros could be raised through a local bond issue, and that a substantial cut in the Italian sales network could as be on the cards. The paper suggests that Fiat could become insolvent within 13 months if it doesn't raise substantial cash to keep repayment of bank debt on track.

Iveco has recently returned to profit, and its mix of profitable and strong selling commercial vehicles, make it and ideal fit for several automotive group's seeking to enter this area. Despite this though, the European commercial vehicle sector has a problem of over-capacity at the moment, and finding a buyer for Iveco could be very difficult.

Lancia meanwhile, has seen its sales climb substantially over the last year helped in particular by two key models, the well-received Ypsilon and the new Musa, which is performing above expectations.

The Lancia Delta to return in 2007

Almost contrary to this gloomy rumour is an announcement that the Lancia Delta is set to return in 2007, news that has sparked jubilation in Lancia fans worldwide.

The original Delta was a real icon of the 1980s, a car that rightly earned its place in automotive history, with its forward thinking design and strong attributes, as well as the now legendary Integrale rally car specials. Lancia enthusiasts can further heave a sign of relief as the new model will take shape on the drawing boards of Giorgetto Giugiaro, a man who is arguably the greatest automotive designer of all time.

Marchionne in his presentation sees the future strategy of Lancia the brand as continuing to stand for 'elegance and class' as well as 'distinctiveness', with reinvigorated characteristics of 'refined coolness and comfort'. The latter phases are significant, and giving Giugiaro a brief to design a 'cool' car, means that Lancista everywhere can rest assured that the next Delta is sure to become every bit as much an icon as the first generation car was.

New Alfa coupe confirmed as the Brera

With Alfa Romeo's Geneva-bound GTV coupe replacement now confirmed as being called the Brera, Marchionne sees Alfa Romeo's values as being concentrated in the areas of 'sportiness, technology and performance'.

Brand focus will be centered on 'streamlined designs to express speed and aggressiveness'. While this focus will be embedded into the forthcoming Brera, and the early summer due Alfa 156 replacement, (still alluded to by its Project 939 codename in the presentation), it will also be a key point to the Alfa 147 successor, due to arrive, initially in 3-door format, next spring.