Fiat’s plans for world domination received a set-back over the weekend as the German government questioned the Italian car maker over its proposals to buy Opel.
Fiat, who recently confirmed an alliance with US car maker, Chrysler, has expressed an interest in purchasing GM’s European operations but has yet to submit a clear takeover bid, despite rumours that there are six other suitors for them.
A potential takeover of the European operations of Opel and Vauxhall by Fiat has raised concerns that it will lead to extensive job losses.
Concerned parties here in the UK, for Vauxhall workers and for Opel workers in Germany have raced to criticise Fiat’s plans. Vauxhall employs around 5,000 people at its plants in Luton and Ellesmere Port while Opel employ 26,000 in Germany.
Fiat’s chief executive, Sergio Marchionne met with German ministers on Friday to discuss a takeover. According to the Financial Times, Mr Marchionne received a lukewarm reception. Kurt Beck, the government leader of Rhineland-Palatinate openly attacked Mr Marchionne’s plans to possibly shut an Opel engine and components plant in Kaiserslautern that has about 3,500 employees. Mr Beck told the publication, his fears about Kaiserslautern were “very, very big”.
Back here in the UK, Andrew Miller, MP for Ellesmere Port told The Telegraph:”Britain accounts for a fifth of GM’s worldwide production and we have a plant where there has been massive investment for the new vehicle.
“Fiat will have to borrow to buy the company and one has to ask whether anyone lending the money would want to shut down a flagship operation.”
GM has requested $4.46bn credit line to facilitate a sale of Opel and Vauxhall.
Other potential buyers for Opel and Vauxhall include Magna International, a Canadian car parts manufacturer.
