Meanwhile major restructuring operation at Fiat underway will see the GM 'put' option either invalidated of pushed further back to around 2007-8. Fiat are negociating to cancel the option in return for GM waiving their right to first refusal on the transfer or sale of Fiat Group assets.

Current speculation surrounds the transfer of the Alfa Romeo division to the Ferrari-Maserati company or possibly its outright sale. Either option is expected to involve the VW/Audi Group.

This would leave Fiat to pursue the "progressive integration" of its Fiat/Lancia/LCV division with GM. It is believed that the American giant is keen to work with Fiat in areas which involve savings, including common purchasing power, platform sharing and 'Powertrain' the joint parts development business.

The scenario also could see Fiat's European, Polish and Turkish operations merged with GM's European Opel operation ( which includes the Vauxhall brand ). Worldwide Fiat operations could be merged or sold to GM regional divisions. The Brazilian and Indians sectors are regarded as profitable ventures and worth an estimated €1.25-1.5 billion.

maximising the Alfa Romeo brand

Alfa Romeo is wholly owned by Fiat Auto, which is in turn 80% controlled by Fiat Group and 20% by GM. 

Ferrari-Maserati is 56% owned by Fiat Group, 34% by a Mediobanca-let consortium which includes Deutschbank. However Fiat has a buy-back option on their shareholding, which was sold this summer for €775 million. The remaining 10% is owned by Piero Ferrari.

Shifting Alfa Romeo would see Fiat hold around 77% of the new company. This is based on estimates that Alfa Romeo is worth around €2.4 billion. Mediobanca and Piero Ferrari would hold the balance. An outside entity, believed to be VW could take up a substantial position by buying Mediobanca's stake plus at least 26% of Fiat's share without control being lost.

As well as a cash imput VW own several prestige brands including Lamborghini, Bently and Bugatti which could be brought into the equation to create a company with an unrivalled portfolio of brands.

Ferrari President would welcome developments

Ferrari President, Luca di Montezemolo is on record as stating that he would love the "challenge of adding and integrating Alfa Romeo with Ferrari and Maserati, but the decision is up to the shareholders." Montezemolo is highly ambitious and expected to eventually have designs of the Italian Prime Ministership, he has been peristently linked with Paolo Fresco's job as Fiat Chairman, but this route would be an appealing option.

Although intergrated into Fiat, virtually all Alfa Romeo models are built at the Naples plant, with only the slow selling large 166 executive saloon ( built now at Mirafiori ) and the Pininfarina-assembled GTV/Spider models being the exception. Alfa Romeo has had almost a year now standing on its own, since being detached from Lancia.

Piero Ferrari "My father begun his career at Alfa Romeo ... and the idea of reuniting Alfa and Ferrari would also mean recapturing a piece of history and tradition." 

"I feel very pleased and honored for the office I was appointed to today, and thank the Board for the confidence it entrusted to me. Being at the reins of Fiat is undoubtedly a complex and difficult task, even more so if we consider the particular moment the company is currently going through.

"I am confident that the Group can count on the people, professional skills and resources necessary to face the stringent commitments that lie ahead of us. And I believe I am entitled to say so because of my thirty-eight-year career in this company and my deep knowledge of its culture, mentality as well as the capability of its people to give the best of themselves especially when difficulties arise.

"Determination and pride surround me: this is the right attitude to deal with the hard work awaiting us and to inject renewed vigor and momentum to our Company, that is and always will be Italy’s most important industrial heritage."

"The decision taken today by the Board of Directors to appoint Mr. Alessandro Barberis as Chief Executive Officer of the Company is undoubtedly the best that could have been taken. Barberis is a Fiat veteran, who started his career from the bottom. He worked in various Sectors of the Company until he reached the position of Chief Operating Officer. He certainly has in-depth knowledge of its problems and its people. This is why he is the right person to pursue with consistency the Fiat turnaround plan.

"I wish to thank Mr. Gabriele Galateri for the excellent work he performed in the few months he was at the head of the executive office. We respect his choice to resign from the post of Chief Executive Officer, but we are glad he accepted to remain as a member of the Company’s Board and, therefore, to continue giving us his precious contribution."

"The Fiat Board of Directors met today under the chairmanship of Mr. Paolo Fresco and accepted the resignation of the Chief Executive Officer and Chief Operating Officer Mr. Gabriele Galateri, who will remain a member of the Board of Directors. It also accepted the resignation from the post of Director of Mr. Ugo Draetta.

"Upon proposal by the Chairman, the Board coopted the Chief Operating Officer Mr. Alessandro Barberis and appointed him Chief Executive Officer of the Company as well.

"In addition the Board of Directors appointed Mr. Franzo Grande Stevens Vice Chairman and Mr. Ugo Draetta Secretary to the Board."