SPECULATION continues to mount that DaimlerChrysler may attempt to broaden its small car line-up by acquiring Fiat. John Lawson, motoring analyst at Salomon Smith Barney, said the possible acquisition of Fiat or Peugeot 'would be the quickest move to plug the gap' in the manufacturer's range'.

He also speculated that Mitsubishi's car operation could be acquired. The rumour mill is also circulating reports that Ford was 'looking at' Fiat and that General Motors had renewed its interest in acquiring BMW and Land Rover.