RSS
As if it can’t get enough of the drama that ensues when trying to take over one American automaker’s operations, Fiat is apparently ready to try taking over two.
According to Germany’s Der Spiegel magazine, Fiat is in talks to take a controlling stake in Opel, which is currently a division of GM – and the basis for GM’s European operations. Citing unidentified sources close to the negotiations, the magazine said Fiat would sign a declaration of intent by next Tuesday.
GM Europe spokesman Frank Klaas declined to provide specifics about GM’s talks to offload Opel.
“We’re in talks with several investors,” he said. “We won’t however, provide any information on the current situation, on which investors are involved, and ask for understanding concerning that.”
GM decided to sell its majority stake in Opel after the German government declined to loan money to the European division. Instead, German Chancellor Angela Merkel said the government would finance a sale if an adequate investor could be found.
Fiat declined to comment on the talks.
Roland Koch, governor of German state Hesse, claims that Fiat and Magna International are just two of the high-profile investors “lining up” to buy a stake in Opel. He said it was good for Opel that investors were competing.
Spiegel said Opel workers’ council chief Klaus Franz is against the takeover, saying that it could lead to a “dramatic loss of jobs.”
Source: Associate Press
MOST COMMENTED ON