Fiat Stock Ends Week with Sharp Net Loss

NEW YORK--(Italy Watch)--Turin-based Fiat SpA (BIT: F) ended the week with a -22% loss ($4.75 USD to $3.57 USD), after reports predicted a 2% GDP contraction in the Eurozone for 2009 and general fears over the company's industrial debt, released Thursday at 5.9 billion EUR.

Rome's La Repubblica recently reported that the Agnelli family is considering a 2 billion EUR capital increase.

Fiat's fall this week comes as somewhat of a surprise, however, considering Wednesday's announcement of a strategic alliance with Chrysler LLC.

The Chrysler deal gives Fiat SpA a 35% stake in the American automaker, and opens the U.S. market to Fiat and Alfa Romeo automobiles. The top brass at Fiat is hoping that the Fiat 500 (pictured below) will do well in the American market at an estimated $13,020 USD price tag.

The Chrysler deal includes $4 billion USD in U.S. government emergency loans plus an additional $3 billion USD in federal aid, and will give Chrysler access to a new market and new technology produced by Fiat SpA. Fiat and Alfa Romeo automobiles will be produced in Chrysler factories, giving needed industrial output to America's ailing manufacturing sector.

If the process moves as projected Fiat 500s will be rolling on American streets within 18-24 months.