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Fiat rolls on alliance hopes
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February 8, 2000: 10:45 a.m. ET
Italian carmaker seeks strategic tie by year-end; DaimlerChrysler talks cited
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LONDON (CNNfn) - Fiat appeared to move closer to a strategic alliance Tuyesday when a senior board member said it is negotiating with several rivals and must make a decision by the end of the year.
Europe's fifth-largest automaker has lost market share in recent years and has been linked to a tie with DaimlerChrysler. The German company wants to boost its presence in the small-car market, a sector where Fiat is seen to have strong engineering skills.
Fiat board member Franzo Grande Stavens told Reuters the company is being "actively courted" by other automakers, but declined to elaborate. The company previously had said an alliance is not essential.
Analysts said Fiat and DaimlerChrysler have held talks but Daimler prefers to avoid the cross-shareholding tie suggested by Fiat. Daimler declined to comment.
However, Fiat shares were up 3.6 percent in Milan Tuesday, continuing a strong run in recent weeks resulting from reported links with Ford (F: Research, Estimates) and General Motors (GM: Research, Estimates).
Fiat's European market share fell to 9.6 percent last year from 10.9 percent, according to the European Automobile Manufacturers Association. This includes its Lancia and Alfa Romeo units. Fiat also owns Ferrari.
While Fiat leads in the Italian market, Europe's second-largest, with a 40 percent share, the company's mid-size models have struggled overseas amid fierce competition from such rivals as Volkswagen (FVOW) and PSA-Peugeot Citroen (PUG). The French company also has been linked with DaimlerChrysler (DCX).
The car division lost 115 million euros in 1998 and another 148 million euros ($145 million) in the first half of last year, though its Iveco truck division is profitable. 
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Fiat
DaimlerChrysler
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