Fiat Fiat’s short story

Fiat stock has had an astonishingly good run of late. The Italian carmaker, long a byword for bail-outs and financial distress, has shot up 60% since its nadir in April. This might suggest that Fiat, under the newish stewardship of Sergio Marchionne, has finally turned the corner. But that doesn’t look likely. The automotive arm of the conglomerate is too small, its costs are still too high and it is still losing money. The explanation for the share price rise is more to do with a E3bn debt-fo...