Report: Fiat in talks on Opel

FRANKFURT — Italy’s Fiat Group SpA is close to an agreement to take a majority stake in General Motors Corp.’s European business, according to a report Thursday in the online version of Germany’s Der Spiegel magazine.

Spiegel, citing unidentified sources it said were close to the negotiations, said Fiat was expected to sign a declaration of intent next Tuesday. Fiat, in the meantime, is in well-publicized talks to take a minority 20-percent stake in the U.S. automaker Chrysler LLC in exchange for small car and other technology.

Zurich-based GM Europe spokesman Frank Klaas confirmed to the AP there are ongoing talks, but wouldn’t specify with whom.

“We’re in talks with several investors,” Klaas said. “We won’t however provide any information on the current situation, on which investors are involved, and ask for understanding concerning that.”

Roland Koch, governor of the German state of Hesse, said Fiat and Canadian car parts maker Magna International are interested in a stake of Ruesselsheim-based Opel. He said that potential investors were “lining up,” and that Fiat and Magna were in that line.

He added that he thought it was good for Opel that there were competing investors interested in the firm. He said however that there was not any agreement with any party yet.

Turin-based Fiat declined to comment on the matter.

Spiegel cited Opel workers’ council chief Klaus Franz as saying that it was against the takeover, which he said would lead to the “dramatic loss of jobs.” Franz did not immediately return calls.

Fiat Group CEO Sergio Marchionne will hold a conference call with analysts to discuss first-quarter earnings on Thursday.

Fiat has until April 30 deadline to reach a deal with Chrysler. The U.S. government has made a deal with Fiat a condition for Chrysler to receive funds it needs to keep operating, or be sold off in pieces.

Marchionne, who has said consolidation in the auto industry over the next two years would leave no more than six global producers, has traveled to the United States several times to work on the deal.

Fiat Chairman Lucia Cordero di Montezemolo said last week that in the “worst case” that Fiat has a Plan B, the news agency ANSA reported.

On the Net:

www.gm.com/europe

www.fiat.com

www.opel.com