Italian car maker Fiat SpA, which is in the process of acquiring the US automaker Chrysler, has intensified its efforts to acquire a majority stake in General Motor's German unit Opel, a move which may lead to creation of the world's biggest auto maker, media reports says.
According to the UK daily
the Times, Fiat officials would meet German ministers today to set out a plan to bring GM's Vauxhall, Saab and Opel into a company with Fiat's core car marques including Fiat, Alfa Romeo and Ferrari.
"Fiat last night set out its blueprint to reshape the global car industry, outlining plans to spin off a new company that will include General Motor's European business and Chrysler,"
the Times said in a report published online.
The US daily
Wall Street Journal has also stated that Fiat SpA chief executive Sergio Marchionne has stepped up his plan to acquire a majority stake in Opel, which is the next phase of his ambitious campaign to forge one of the world's biggest auto makers by crafting a three-way alliance among Fiat, Chrysler and Opel.
Last week, Marchionne signed a partnership with Chrysler LLC in Washington.
In a statement, Fiat said on Sunday that the board had authorized Marchionne to seek a potential merger between Fiat and GM's European operations, including Opel and its UK unit Vauxhall.
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.
The WSJ report further stated that Fiat had been in talks with GM for months over the purchase of a majority stake in Opel, according to people familiar with the negotiations.
Further, Marchionne believes that Fiat needs to sharply increase its current production of 2.2 million cars a year to gain economies of scale that could make Fiat viable in future.
"Merging with Opel, in addition to Fiat's alliance with Chrysler, would allow the Italian auto maker to reach Marchionne's goal of producing at least 5.5 million cars a year," the WSJ report stated.
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