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Background
Pow­er­train joint ven­ture based in Italy
Pur­chas­ing ven­ture head­quar­tered in Ger­many
Agree­ment = GM to swap 20% stake in Fiat with $2.4B in GM stock
Significant Points
1-day protest sets wheels in motion for imme­di­ate agree­ment between com­pa­nies
Strike caused pro­duc­tion lapse of 10,000 vehi­cles
Pow­er­train & pur­chas­ing joint ven­tures to account for 80% man­u­fac­tur­ing costs of each Fiat car
Joint ven­ture seeks effi­cien­cies build­ing 1-kind of engine in sin­gle fac­to­ry
Situation
GM & Fiat says no job cuts expect­ed due to alliance
Agree­ment reached with work­ers in Europe to guar­an­tee no changes in work con­di­tions
Alliance begins with com­bined pur­chase & pro­duc­tion of engines & pow­er­trains in Europe & Latin Amer­i­ca
Sup­pli­er cut­backs not ruled out
Plans to move 4500 Opel work­ers sparked 1-day strike
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