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Alfa Romeo's American problems were with their dealer network and spotty quality...not emissions testing or crash testing. Near the end, they had formed a relationship with Chrysler where Chrysler would distribute the cars through selected dealers. When sales didn't pick up, the company stopped marketing cars in the US. The final products were the 164 and Spider in 1995.
As for the Fiat/GM tie-up, it's no rumor...it's fact. Fiat SpA purchased 5% of GM and GM bought 5% of Fiat Auto. GM's not "at the helm", it's just a corporate relationship. Fiat and GM have begun designing vehicles together and the first joint-designed vehicles will arrive in the next 3-4 years.
Alfa Romeo will return to the US in 2005 with the new Spider. The replacement for the 166 and 156 are expected to follow.
Fiat is not at risk of sinking due to the link-up with GM.
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