Fact or idle rumor?
An Italian magazine last week reported Fiat Auto could be merged in a new company, of which Fiat SpA will hold 40 percent, Ford Motor Co. 40 percent and General Electric Co. the remaining 20 percent. On 23 June, GE Chairman Jack Welch joined the Fiat board as an 'independent director.' Fiat and Ford denied the rumor, but Umberto Agnelli, head of the family holding company that controls Fiat, said: 'It is possible that, at a certain moment, the best agreement will be with someone much bigger than you. At that point, you will become shareholder of a bigger and stronger group.'
Clio V-6 for Sweden
The Renault Clio Sport V-6 24v, which debuted at the 1998 Paris auto show, will be built next year at TWR Group's joint-venture plant with Volvo in Uddevalla, Sweden. The two-seater will go on sale before the end of 2000.
A package of stories on Page 21 of the 21 June issue, about an A.T. Kearney study of auto suppliers, contained several errors:
References to shareholder return, revenue growth, return on net assets and other measures for the years 1996-98 should have noted that these were average annual changes over the three-year period.
The story at the bottom left corner of the page listed an incorrect figure and year in a reference to price-earnings ratios. The year is 1998; the correct figure for the Standard & Poor's fund is 32.6 times earnings.