Fiat now wants merger with Opel
May 4, 2009 by David Twomey
Italian carmaker Fiat SpA could seek a merger of its automotive group with General Motors Corporation’s European unit, Opel-Vauxhall, then spin off the combined company and list it, Fiat has said.
Fiat Chief Executive Sergio Marchionne, fresh from a partnership with ailing US carmaker Chrysler, is meeting German government today to discuss a bid for German carmaker Opel, part of GM Europe.
Fiat’s board met on Sunday to review the Chrysler deal and back Mr Marchionne in weighing a potential merger of Fiat’s automotive group, including “the Chrysler interest,” with GM Europe into a new company, Fiat said in a statement.
“As part of this process, the Group would evaluate several corporate structures, including the potential spin-off of Fiat Group Automobiles and the subsequent listing of a new company which combines those activities with those of General Motors Europe,” it said.
A combined company would have yearly revenue of about 80 billion Euros (US$106.3 billion), Fiat said.
The statement did not mention Opel, which makes up 80 per cent of GM Europe’s revenue. Under a GM restructuring plan, Opel, including British affiliate Vauxhall, would be spun off.
Fiat is reported to be set on acquiring Opel after it struck a last-minute deal to buy an initial 20 per cent of Chrysler, just ahead of the deadline set by the Obama administration in the US to cement a partnership.
German Economy Minister Karl-Theodor zu Guttenberg said on Sunday that Fiat, and any investor, had to present a solid long-term strategy to keep Opel plants open to obtain German government support.
“We will not enter into any financial adventure with taxpayer money,” Mr Guttenberg said in an interview with Bild am Sonntag newspaper.
Mr Marchionne is in Berlin to meet Mr Guttenberg and Foreign Minister Frank-Walter Steinmeier, the chancellor candidate for the Social Democrats in September’s election. Mr Steinmeier has spearheaded government efforts to keep Opel alive.
Aside from Fiat, Austrian-Canadian car-parts maker Magna International has also expressed interest in Opel. Mr Guttenberg said that Magna had presented the rough outlines of a rival offer to acquire Opel.
Mr Marchionne has said Fiat needed a partner to reach output of 5.5 million to 6 million units a year, the scale he believes necessary to survive the car industry crisis.
Opel, hit by a slump in demand due to the global downturn, has four plants in Germany and employs about 25,000 workers there.
German magazine WirtschaftsWoche cited sources close to the talks as saying Fiat had made an offer for Opel of less than 1 billion Euros, which GM considered inadequate.
Print it: 
First the Chrysler thing, now this. What have these Italians been drinking?
Opel makes more sense than Chrysler, however I don’t understand why they would want Opel, considering on where it competes in the European market, isn’t it too similar to Fiat?
Fiat will take both chrysler and opel to the cleaners..this guy has already stated that Fiat will not put 1 dollar into chrysler, apart from that..whos gonna rescue Fiat in 6 months..lol
OPIAT the ultimate driving drug?
i know it has different spelling but who cares.
i wish Fiat Opal Chrysler all the best.
Fiat CEO knows what he is doing. They took GM to the cleaners for Billions of $$$ just a few years age. They have a strategy ….Remember that the Italians keep their cards to their chest very closely.
Cant wait to see Alfa return to Reae Wheel drive now that Fiat has access to Chrysler RWD platforms….This will be interesting
FIAT just wanna milk those 2 companies like they have milked US$2 bil out of GM a couple of years ago.
australian fiat franchise anybody ????????
Everyone wants Fiat technology now because they are the masters of small car engines.
Astra already uses Fiat engines in diesel and Franco/Germans use Fiats pre multi air systems for all small cars. Do some research.
Just remember guys, EVERYONE turns to the Europeans for new ideas.
AS AN ITALIAN THIS IS FANTASTIC NEWS AS NOW FIAT WITH ITS UMBRELLA OF COMPANIES is NOW THE GREATEST CAR MAKER IN THE WORLD. TODAY ITALIAN TOP END MODELS ARE FAR SUPERIOR TO THAT OF BMW AND MERCEDES. IT WILL BE A GREAT WORLD WHEN WE DRIVE ONLY ITALIAN CARS.
The whole lot will be broke in 12 months…..
Interesting, Combine with Opel to get VWAG like volume on a shared platform. Fix It Again Tony seem to have their head screwed on correctly these days. Smart enough to realise that GM weren’t the best bed partners, although some of their product was good. Clever enough to get GM to pay to let them go. Now they will use GM’s own money to buy the only Golden child off them.. LOL
go for it fiat….
Il duce, 2nd that motion…
Renaldo…never even thought of that 2 be honest, rwd alfa’s..Oh how good would that be….yes please….bring it on…
I totally agree with Renaldo. The Fiat CEO knows what he is doing.
The Fiat group are making better and better cars. There small engines are now up there with the best. The Alfa 159 will come out with a new 1.8 turbo to replace the 2.2 and at least on paper it looks to be as good as any German small turbo engine.
Elitist and Il Duce, I like your way of thinking.
The Fiat Common Rail system was soo advance Bosch bought it and now every Franco/German car uses it. Fiat will not be selling its new Multiair system, instead using it for all new cars under Fiat umbrella.
Fiats new Multiair 2 cylinder puts out 105HP…Thats amazing compared to what the Japs are doing.