Fiat slashes losses, stands by alliance with GM

The Italian automobile and industrial conglomerate Fiat said Friday it cut its net loss by more than half last year and forecast its full financial recovery for 2006.
Presenting the group's results, Chairman Umberto Agnelli said: "I cannot say I'm happy, because the loss remains large, but I am satisfied by what the management team's been doing these last months."
The group, which is dealing with severe problems at Fiat Auto last year, also said that its industrial alliance with US manufacturer General Motors was not affected by talks on an option for Fiat to sell Fiat Auto to the US group
Chief executive Giuseppe Morchio, presenting the results, said that the industrial alliance was "strong" and was "beneficial to both partners". It was not under discussion.
But the two companies continud to discuss an option which would enable the Fiat group to sell Fiat Auto, of which it owns 90 percent, to GM, he said.
It was desirable that "we do somethething" before a deadline of December 15, he said.
GM, which owns 10 percent of Fiat Auto, wants to end the option but Fiat wants to draw financial benefits from abandoning the clause in arrangements made in 2000 when the industrial alliance was signed.
The company said it had slashed its consolidated net loss last year by nearly 52 percent from the record 2002 figure to 1.9 billion euros (2.4 billion dollars).
The Fiat group said in a statement that sales fell back by 15 percent to 47.271 billion euros.