GM pays $2bn to evade Fiat buyout
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US carmaker GM agrees a $2bn price-tag with Fiat to get out of a deal which could have forced it to buy the Italian firm.
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TURIN/DETROIT  - Fiat FIA.MI and General Motors  GM.N on Sunday dissolved their five-year partnership with the  U.S. auto giant paying the Italian group 1.55 billion euros ($2  billion) in cash to avoid having to buy loss-making Fiat Auto.
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The Italian Fiat group and US General Motors seemed set for tense "mediation" to avert possible legal action over a disputed option by Fiat to sell its auto business to the US company.
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Italian industrial group Fiat, based largely on autos, reported a bigger-than-expected rise in second-quarter net profit and raised its forecast for the year.
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General Motors Corp. could take a $1 billion charge in the second quarter in relation to its financial exposure to Delphi Corp , GM spokeswoman Renee Rashid-Merem said on Thursday.
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ROME -- General Motors Corp. agreed yesterday to pay Fiat SpA $2 billion to resolve a contract dispute, allowing the US carmaker to divest its stake in Fiat's troubled auto unit and revise the companies' business relationship.
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With postponed deadlines and secret meetings, Fiat SpA and General Motors Corp. have kept everyone guessing about whether the Italian group will exercise an option forcing the U.S. carmaker to buy its troubled auto division.
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General Motors Corp. GM.N, the  world's biggest automaker, will keep shrinking its U.S. work  force this year, offering buyout packages to more salaried  employees to offset rising costs, executives said on Monday.
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Some of Fiat&#39;s auto workers struck for two hours Monday, a day ahead of a top-executive meeting that could determine whether Fiat SpA insists on an option to force General Motors Corp.
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General Motors  had a good second  quarter, its head of purchasing said on Thursday, adding that  the carmaker&#039;s procurement bill should fall this year even  though it expects raw material prices to stay high.
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Contract ends a two-day strike but might not bring GM the big cost savings investors hope for.
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The company was forced to drop the sale price of its commercial supply business by nearly $2 billion, one of the first big buyouts to be renegotiated as a result of the recent credit squeeze.
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Fiat chairman Luca di Montezemolo has brushed off media reports that the company wants to scrap its partnership with US giant General Motors (GM).
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MILANO - Le azioni Fiat salgono in Borsa (+1,32%) dopo le voci di una clamorosa richiesta di risarcimento di 3 miliardi di dollari (2,25 miliardi di euro) nei confronti di General Motors (GM), in cambio della rinuncia ad esercitare il Â«put Â», ovvero la
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General Motors Corp., the world's biggest automaker, has pledged to avoid plant closures and forced layoffs in Europe as it seeks to return its money-losing European operations to profitability, worker representatives said Wednesday.
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Fiat kept up the pressure on General  Motors Corp. before a key meeting on Tuesday, saying the U.S.  group would not be able to shut down the Italian carmaker if it  ends up having to buy it.
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Fiat and General Motors failed to settle  a row over whether the Italian group can sell its ailing car  unit to its U.S. partner and Fiat said it could exercise the  option any time from Wednesday.