The head of General Motors’ German operations Adam Opel has described talk of a possible merger with Fiat’s Auto division as “wild speculation”, Reuters reported, citing a German newspaper.
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Reuters said the struggling Italian group has a put option that allows it to sell the remaining 80% of loss-making Fiat Auto to GM from 2004.
Reuters said many analysts think that GM — also struggling to return its European operations to profitability by cutting capacity — would gain little from taking over Fiat Auto.
“We cannot do anything with under-utilised Fiat plants,” Opel chairman and managing director Carl-Peter Forster told the Frankfurter Allgemeine Zeitung daily, Reuters reported.
A spokesman for Opel could not confirm the quotes, Reuters said.
According to Reuters, the newspaper said Forster described the debate about a merger with Fiat as “wild speculation” and that it remained to be seen whether Fiat would exercise the put option.
“We will manage if they do,” Forster was quoted as saying, Reuters said.
Forster also reiterated comments made earlier this year that the Opel and Fiat brands would fit well together, the paper said, according to Reuters.
Reuters added that Forster was also quoted as saying his voice was being heard in the United States as GM considered the Fiat situation.
“I don’t feel excluded from the discussion,” the paper quoted Forster as saying, Reuters said.
Fiat already operates purchasing and powertrain joint ventures with GM’s European operations, Reuters noted.
