Fiat has reportedly opened acquisition talks with General Motors in its continuing effort to become a global car manufaturer.
The Italian firm is said to want a stake in its US rivals highly profitable Latin American operation as well as its loss-making European operations, which include Saab, Vauxhall and Opel. Despite its precarious financial position, GM wants a share in Fiat in exchange – four years after paying some two-billion euros to end its fraught partnership with the Italians. Sources close to the talks say Fiat is only willing to give up no more than ten percent. Either way, unions in Germany and Britain are opposed to the proposals, which will probably lead to massive job cuts if a deal is agreed. Meanwhile, Fiat’s announced that its chief executive, Sergio Marchionne, will head up Chrysler once it emerges from bankruptcy, while remaining CEO of Fiat.