Fiat has emerged as the favourite to take control of Bertone's contract manufacturing business with Fiat Group CEO Sergio Marchionne saying that the Turin factory would be used to build niche production models although he had no interest in acquiring the Bertone name. The news update came from Automotive News Europe which published a detailed summary of the situation yesterday and quoted Marchionne as saying he was "very optimistic" of getting control of the idled division.

The history of Gruppo Bertone, one of the world's most famous design names and the oldest contract vehicle manufacturing company in Italy - which was founded as Carrozzeria Bertone in 1912 - has faded from its glory days down to a complete standstill in recent years. Nuccio Bertone, the son of the founder, passed away in 1997 leading his widow, Lilli, in control of the firm's destiny.

The production lines of its factory in Grugliasco, Turin have been idle since a contract to upgrade 2,000 MINI models (to top John Cooper Works Grand Prix specification) ran to a conclusion more than two years ago. Before that its last major work was building the convertible version of GM Europe's last-generation Vauxhall/Opel Astra model; that contract ended in late 2005. It was eventually plunged into bankruptcy at the beginning of last year with a tribunal appointing a trio of administrators to find buyers for the failed company.

Now it is reported that Fiat will use the factory to build niche models. Carrozzeria Bertone still has just over 1,100 staff on the payroll. Fiat declined to say which niche model or models it would make at Bertone's Turin factory-–reported ANE yesterday as the Italian media swiftly embarked on a wild round of speculation as to what could be built at the factory-–r The only detail the company gave was that the vehicles would be sold in Europe and North America. Italian unions estimate Bertone's installed capacity at 140,000 units a year-–said ANE-–Fiat disputes that number. The automaker says that capacity at Bertone (counted as paint shop output) is currently 48,000 units a year on three shifts. ANE quoted "a former Bertone executive" as saying that "Fiat's number is much closer to reality." He reckoned that Bertone's output is around 55,000 units a year.

ANE says that Fiat is the "front-runner" among the five offers made to the bankruptcy tribunal on July 16, two days after Fiat announced that it was throwing its hat in the ring. The newspaper added that "people familiar with the matter say that the only other offer still being evaluated by the administrators comes from Gianmario Rossignolo" and went on to outline "that he plans to use the plant to produce up to 10,000 units a year of a luxury sedan and SUV." Both Fiat and Rossignolo are only interested in the production capacity and have no interest in acquiring the rights to the Carrozzeria Bertone brand name. Stile Bertone, the design division of the Group hasn't been affected by the liquidation of Carrozzeria Bertone and remains in the family's hands. The name will be auctioned off separately with Lilli Bertone believed to be the only person to have placed a bid so far.

Yesterday's report from ANE also states that Fiat made an attempt to buy a majority stake in Carrozzeria Bertone three years ago. In 2006, Fiat started negotiations to buy a controlling stake in the company–ANE reported-– It planned to make a coupe cabriolet for the Lancia brand at the plant. For undisclosed reasons, the talks between Fiat and Bertone collapsed in spring 2007. Shortly after that, Fiat scrapped plans to make the coupe cabriolet, which was known as the Fulvia.