Fiat's Ambition

Fiat, not long from financial ill health itself, seems to be intent on soaking up the marginal players in the current business cycle. They are intent on picking up GM's Europe holdings.

Frankly this is a bit troubling because neither Chrysler or GM Europe has made a profit recently. Will these two additions prove to be the 'gravitas' that propels Fiat to the forefront of automakers, or will they prove to be the Albatross around the neck that brings Fiat down?

I suspect the answer will depend on the type of recovery we see from the current recession. If it is a V-shaped or even U-shaped recovery, they may come out smelling like a rose. But if it is an L-shaped recovery, Fiat may wish it hadn't reached for an Opel or Dodge too far. ; -)