Fiat will not survive without merger, says chief executive
Fiat's chief executive warned yesterday that Italy's leading
industrial enterprise would be unable to survive on its own amid
the crisis besetting the global car-making business.  Sergio
Marchionne said he expected the industry to consolidate during
the next couple of years, leaving only six companies to dominate
the world market.  "You need [to sell] at least 5.5m to 6m cars
[a year] to have a chance of making money," Marchionne was
quoted in Automotive News Europe.  "Fiat is not even halfway
there. So we need to aggregate, one way or another."  Fiat
shares put on a sparkling performance yesterday, trading at
€5.37, up 6% on the Milan bourse's Mibtel index. Some investors
will have been tempted by the prospect of Fiat as a takeover
target. Others, though, may have taken the view that
Marchionne's remarks were calculated to persuade the Italian
government to pour yet more taxpayers' money into the much-
subsidised company.  The disappearance of Fiat a