Fiat in bid to buy German Opel

Italian firm bids for GM Europe merger, with aims to create second biggest car maker.

    Sergio Marchionne has said any merger would not affect Italian car manufacturing plants [AFP]

    Sergio Marchionne, chief executive officer of Fiat, has said any merger with Opel will not cause Italian manufacturing plants to close.

    His comments come after thousands of workers marched in Turin, Fiat's hometown, on the weekend over concerns about the company's move to take over GM Europe's operations.

    "Marchionne has always said and maintained, also in recent days, that closures in Italy are not foreseen," Claudio Scajola, Italy's industry minister, told the Corriere della Sera newspaper on Wednesday.

    "The strategy would be to aggregate around Turin (both) Chrysler and Opel to create the second-largest group in the world, with the greatest volumes and most evolved products. I would be more concerned if Fiat would have remained still, or if it had been Opel to buy it."

    Marchionne has been meeting officials in Germany to lay out his plans to take on Opel.

    He also has reached a deal for Fiat to take a controlling stake in Chrysler, an operation that will be completed once the US firm emerges from bankruptcy.

    Fiat has said it plans to create a new company that would group brands including the Fiat, Lancia and Alfa Romeo with GM's European operations including Opel, and to list it on the stock market.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Double standards: 'Why aren't we all with Somalia?'

    Double standards: 'Why aren't we all with Somalia?'

    More than 300 people died in Somalia but some are asking why there was less news coverage and sympathy on social media.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Kobe Steel: A scandal made in Japan

    Kobe Steel: A scandal made in Japan

    Japan's third-largest steelmaker has admitted it faked data on parts used in cars, planes and trains.