GM, Fiat in dispute over agreement

A big-time contract dispute is simmering between two automotive biggies, General Motors and Fiat.  The parties are in mediation over a 2000 agreement that, in essence, permits Fiat to compel General Motors to buy the 90 percent of Fiat’s automotive division that GM doesn’t already own. GM claims that the agreement doesn’t require any such thing.

The Detroit carmaker yesterday announced sharply lower profits for the year, due in part to the write-down of the value of its stake in Fiat, a company in such difficulty that “troubled Fiat” is very nearly its trademark these days.  The company’s lineup of vehicles (left) is one of the few that makes GM’s look good exciting by contrast.