Business NEWS
After Chrysler, Fiat boss Sergio Marchionne steps up efforts to acquire stake in Adam Opel GmbH
By Amarendra Bhushan for CEOWORLD Magazine Updated:May 4, 2009
Get CEOWORLD Magazine digital monthly version. special- Top Capital Cities for a business Traveler, # Interview with Minister of Tourism of Greece. 1 Issues Subscription= $1 Only, 10 Issues Subscription= $5 Only. Grab your copy now!!!!
Italian car company Fiat SpA’s CEO Sergio Marchionne is holding talks with the German government ministers. German Economy Minister Karl-Theodor zu Guttenberg said he did not expect a final decision on the future of carmaker Opel to come out of his meeting on Monday with Fiat SpA’s chief executive.
His plan would involve spinning off GM’s Vauxhall, Saab and Opel into a company with Fiat’s core car marques including Fiat, Alfa Romeo and Ferrari.
The Italian carmaker is interested in purchasing the German automobile manufacturer Opel, which has been severely affected by the financial crisis.
The German authorities are prepared to offer attractive loans to any company willing to invest in Opel, as long as it receives guarantees that as many jobs as possible will be saved.
The Germany car manufacturer is currently owned by the US firm General Motors, which is facing potential bankruptcy. Fiat is already taking steps to buy Chrysler, which is applying for bankruptcy protection.
If a deal is reached, Fiat would consider creating a new publicly traded company that combines the auto maker’s car unit, Fiat Group Automobiles, with GM’s European operations, the statement said. The three-way alliance is expected to generate 80 billion Euro in revenue a year.
Adam Opel GmbH, a core part of GM’s European operations, which employs about 25,000 people at four plants in Germany.
An interview with the Financial Times, Marchionne said he wanted to build a European car giant with Fiat, Chrysler and Opel by forming a new publicly traded company with revenues of about €80 billion ($106 billion) and sales of six or seven million vehicles a year.
According to inside sources, Fiat’s offensive might not stop here, as the manufacturer is eyeing a deal with PSA Peugeot Citroen (remember the Eiffel plan we talked about a few weeks back). As a contingency plan if the Opel deal should go south, Fiat is said to want to buy GM’s South American operations
Like this article! |
|
|
|
|
(No Ratings Yet)
Loading ...17487 views
Comments
Grab a copy of CEOWORLD Magazine for $1 only!!!
