Tales of the automaker

Automakers on both sides of the Atlantic are drawing a lot of attention to themselves with Fiat at the forefront, as the Italian carmaker has confirmed it also wants to take over General MotorsÔÇÖ European business, which includes Opel and Vauxhall, after making an agreement last week to take a 35 percent stake in US group Chrysler. ┬á If the GM Europe deal is completed, Fiat estimates it would make it the world's second-largest carmaker, after Toyota, up from its current 10th position. ┬á Fiat's group chief executive Sergio Marchionne said a coming together of Fiat, GM Europe and Chrysler would be a "marriage made in heaven.ÔÇØ┬á For a carmaker that used to be preoccupied with simply returning to profit, Italy's Fiat has come under fire for its suddenly developed risky ambition, but Marchionne says the figures speak for themselves. He estimates that a combined Fiat-GM Europe-Chrysler could sell more than six million cars a year. ┬á The opportunism comes from the fact that such is the extent of the financial woes facing Chrysler and GM in the US, Fiat will likely be able to pick up Chrysler and GM Europe very cheaply indeed. ┬á "We're in the middle of an automotive yard sale," says car industry analyst Michael Robinet of CSM Worlwide. Marchionne has "gone to a yard sale and picked up some really good stuff". ┬á While no financial details have yet been released, reports suggest Fiat may be able to buy GM Europe for as little as 1 billion euros. ┬á Meanwhile, German car sales have hit a rare bright spot, climbing 19 percent in April compared with the same time a year ago, thanks to a trade-in plan to scrap old cars that continues to encourage purchases. ┬á Germans have been taking advantage of a scheme that will be phased out by the end of 2009, in which case the dealer gives drivers 2,500 euros for trading in a car more than nine years old. ┬á Data released this week showed that new car sales fell by 7 percent in France and by 7.5 percent in Italy. ┬á British company Jaguar Land Rover is also seeking to increase sales, announcing its brand of cars will formally go on sale in India for the first time later this year. ┬á Jaguar Land Rover says it is a strategic move to capitalize on India's "rapidly expanding market." ┬á The British company is owned by Indian group Tata Motors which plans to import the cars and then sell them using its own dealership network. ┬á "We are delighted to be formally entering the Indian market, an economy which is still growing appreciably," said David Smith, Jaguar Land Rover chief executive. ┬á Domestic sales of all passenger vehicles grew 12 percent in India between April 2007 and March 2008 according to the Society of Indian Automobile Manufacturers. ┬á "Jaguars and Land Rovers are brands Indian consumers will already be aware of through British links and TV programs," according to Professor David Bailey at Coventry University Business School. ┬á "Jaguars would be a particularly attractive option for the country's growing middle classes," he said, and he also thinks Land Rovers could do well there because they suit the countryÔÇÖs rough terrain. ┬á Sales of vehicles in India have been helped by lenders reducing the interest rates for cars from about 13 percent to 10 percent.