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.

Two of the most interesting have been the Fiat Simba mini-off road concept which is based around next year's Panda/Seicento-replacing mini car and gives the first pointers as to how the model, codename 'new small' will look. Over on the Lancia stand the Thesis-based 'Grandturismo' designed by Carcenaro and Lancia Centro style has impressed onlookers with its flowing 'large-GT' lines.

Mediobanca's preffered replacement for Gabriele Galateri who resigned as joint-CEO on Tuesday, Enrico Bondi, failed to be appointed and it is now expected that Alessandro Barberis, a long serving Fiat employee who is credited with turning around the fortunes of Scooter manufacturer Piaggio, will be given the job.

Two sides have formed up in the battle for the future of Fiat. Paolo Fresco, most of the board and the creditor banks which this summer lent Fiat €3bn, wish to implement the recently announced restructuring plan and force GM to take up the option to purchase the auto division in 2004. Meanwhile major shareholders, the Agnelli family, influential merchant bank, Mediobanca, and Italian Prime Minister, Silvio Berlusconi, prefer to sack Fresco, appoint Bondi as CEO and work on a plan to create a Ferrari-Maserati-Alfa Romeo company, selling a stake of up to 49% to Volkswagen AG.

The creditor banks have currently agreed to put on hold negociations to take a 51% stake in Fidis, the group's profitable finance arm, while Fresco is in theory safe until the next shareholder's meeting in April. Financial analysts meanwhile believe that failure to remove Fresco is an unwelcome outcome, aportioning to him blame for much of the mess that the Group currently is mired in.

VW have officially denied any involvement in current affairs. However, their continuing failure to elevate Seat upmarket, the brand they publicly stated would be targeted to compete head to head with Alfa Romeo, could see them interested in an Alfa Romeo stake. At the same time insiders at Maserati, after admitting "commercial and technical talks" were on going with VW Group company Audi, have attempted to dampen mounting speculation by stating that talks were revolving around tapping into Audi's aluminium production technology.

Production in Poland will commence in January, with final production versions rolling from May. By the end of the year 70,000 are expected to have been built. 200,000 units will come out of the factory in 2004 ( 80% will be exported ) while 2005 will see production hit capacity of 250,000 units per year. By this point, the "New Small", initially to be produced in a 5-door version, will have been joined by a 3-door option along with a 4x4, performance "Sporting" and minivan. A number of options are also being evaluated including a "mini-pick up", as well as environmental and themed "fun" versions.

Initially planned only with a 5-door version, one of Gianni Coda's first changes on taking over as head of the Fiat-Lancia-LCV division earlier this year was to add a 3-door option. Fiat have been rushing ever since to reduce the lead time to get this model added to the range.

Meanwhile the long awaited Fiat Croma replacement, code name "New Large" has been sent back to the drawing board. It is believed that Gianni Coda was extremely unhappy with almost all aspects of the cars design. Slated by those who have seen it as being even uglier in the flesh than impressions have conveyed, sources say the interior falls "woefully short of what is expected from a large executive saloon". The project has been dropped back by two years to allow it to be integrated into the platform sharing program and for lessons to be drawn from the Lancia thesis, the group's first large Fiat/Lancia saloon for 17 years. 

Meanwhile the issue of re-organisation exploded yesterday as several issues came to the fore:

- Alfa Romeo to be transferred to the Ferrari-Maserati Group
- Fiat to cancel the 'put' option requiring GM to buy the auto division
- GM to give up first refusal option on sale of transfer of auto group assets
- VW/Audi to take 'significant but minority' stake in the new Ferari-Maserati-Alfa Romeo company
- 'Powertrain', the joint GM/Fiat parts development company and platform sharing to be unaffected

It is believed that Fiat are discussing with GM termination of the agreement which will force the US car giant to buy the auto division in 2004 if Fiat wish. GM would in turn give up the option of first refusal on the sale of Fiat assets, allowing the transfer of Alfa Romeo to the Ferrari-Maserati Group to create a luxury-sporting company in the style of Ford's "Premier Brands" division. This new Ferrari-Maserati-Alfa Romeo Group would sell a "significant but minority" stake to German carmarker Volkswagen AG. Speculation has swirled around this issue since Maserati officially confirmed yesterday that "talks have been underway for several months with Audi with a view to possible technical and commercial cooperation between the two companies." Audi is part of the VW Group.

These changes will not affect 'Powertrain', the joint GM/Fiat parts development company, joint parts purchasing schemes and the platform sharing program.

The rear of the freshly cosmetically facelifted Barchetta has been seen for the first time, and although the new large front grille and revised headlamps have generally been welcomed, first reactions to the rear bumper have been of a somewhat awkward and clumsy restyling.

The Alfa Romeo Brera, which will form the basis of a limited run sportscar, the new 250 bhp Alfa 147GTA hot hatch, the N-Technology-built SuperTouring-based 3.5-litre Alfa 156GTAm concept, and the show stopping Ferrari Enzo, located on an angled stand first used in Paris, make up this look at the static display at Bologna.

With Alfa Romeo having to massage performance figures in order that the smaller, lighter 147GTA does not officially out perform its larger and more expensive 156GTA cousin, they have taken the step of raising the engine capacity for the 166GTA to avoid any unflattering comparisons. The facelifted 166 which will roll out in September will be made up of a range with heavy hitting powerplants. The entry level version will be a 165 bhp 2.0 JTS unit, followed by a 192 2.5 V6, a 225 bhp 3.2 V6 and finally the range topping 300 bhp 3.5 V6 GTA. These petrol units versions will be joined by two diesels, a 150 bhp 2.4 JTD and a 180 bhp 20v 2.4 JTD.

Inside sources state that the end of 2003 will see the introduction of the Alfa 156GTA Evoluzione, with four wheel drive and powered by either a 280 bhp 3.2-litre V6 JTS engine or possibly the new 300 bhp 3.5-litre V6. This will be joined by entry level 130 bhp 1.6 JTS and 150 bhp 1.8 JTS versions.

Meanwhile the Maserati Trofeo GT-racer has impressed the public at the Bologna Motor Show which opened at the weekend. Two Trofeo's, in the hands of Ferrari F1 test driver, Brazilian Luciano Burti, and GT tester Andrea Bertolini, undertook demonstration runs on Sunday around the temporary race circuit in a program which included standing starts and simulated pitstops.

Sunday afternoon also saw the finals of the SuperTouring 2000 Challenge which involved cars and competitors from this year's European Touring Car Championship. Eventual victory went to Nicola Larini who beat his sometime team mate Roberto Colciago, both running in identical Nordauto Alfa Romeo 156GTA's. 

The Alfa 147GTA Cup VIP race saw motorcyclist Loris Capirossi and Brazilian Ferrari F1 test driver Luciano Burti joined by the Nordauto Alfa Romeo team mates Nicola Larini and Roberto Colciago who were pitted against each other. In the Caprirossi-Burti dual, the Brazilian Ferrari test driver prevailed, overtaking the strong resistance of the motorcyclist during the third lap, while between Larini and Colciago the former won, dominating from the moment of the green light on.