With just a week to go before Fiat and Chrysler must firm up their merger plans, it would seem odd that Fiat would spend its time discussing taking a possible majority stake in General Motors’ Opel and Vauxhall units, but that’s just what a labor boss at an Opel union in Germany told the media that the Italian automaker was planning to do.
Klaus Franz, chairman of Opel’s supervisory board and head of the automaker’s union, told Deutsche Presse-Agentur that Fiat intends to take a majority stake in Opel and Vauxhall, but that the unions would oppose a takeover because of the assumption the Italian carmaker would cut German jobs and factories.
It has been widely reported in German media that Fiat is interested in Opel and its British Vauxhall sister, even though no official word has come out of either automaker. Der Spiegel reported that Fiat and Opel will sign a “letter of intent” next week, even before the Chrysler/Fiat deadline and Auto Motor Und Sport claims that GM CEO Fritz Henderson has held talks with Fiat’s Sergio Marchionne about the potential tie-up.
GM has been considering spinning off Opel and Vauxhall entirely, but has said that it would not be opposed to keeping a share in the brands if an outside party were to buy a controlling share.
Auto Motor Und Sport says that Fiat is interested in accessing the platforms that underpin the Insignia and Astra. Fiat’s Croma (pictured), a less-than-successful midsize sedan (and Fiat’s largest non-commercial vehicle) is based on GM’s Epsilon architecture, which also underpins the Saab 9-3, Chevrolet Malibu and Pontiac G6. The new Insignia, which replaced the Epsilon-based Vectra, rides on GM’s new Epsilon II platform, which allows for easier adaptation to all-wheel-drive, among other advantages. The Fiat Linea, sold in emerging markets, is also based on GM architecture – the platform that underpins the Opel and Vauxhall Corsa.
04/23, 9:34 AM
posted by:
carstuff
Wow, looks like it is going to be a Chrysler/Fiat/GM mega corp.
Experts have been saying we will be down to less than 5 mega auto companies in a few years.
Where the heck did LLN get that GM was trying to sell all of Opel? First I heard of that. GM wants to keep Opel but sell a portion of it for the money.
04/23, 9:49 AM
posted by:
cereal
Well what an interesting turn of events.
Could we be seeing some odd hybrid of a GM/Chrysler/Fiat?
I’m watching.
-eat your cereal
04/23, 10:42 AM
posted by:
PassingGear
The ‘-eat your cereal’ tag at the end has gotten really old dude. Give it a rest…
04/23, 10:48 AM
posted by:
oldraven
Carstuff, that was Marchionne himself who said that. He said he thought there would end up being one giant Motor Company for all of Europe.
04/23, 10:54 AM
posted by:
johnnycanuck
The auto industry is starting to resemble a box of hamsters- just crawling all over each other.
04/23, 11:36 AM
posted by:
casualobserver
This makes much more sense from Fiat’s perspective. WIth Opel/Vauxhall, Fiat would then be in a perfect position to make a play for Saturn dealers in the US.
That would give them a US dealer network (one of the best) and a complementary line of vehicles, and give GM some cash to bolster its core brands (though it would lose significant market share in Europe).
Chrysler is really are a greater liability than an asset to Fiat.
When Chrysler files for bankruptcy next month, Nissan will make a play for Chrysler’s truck business and they or someone else will make a play for the Minivans and Jeep.
Nissan will sell Chrysler full size trucks through the Dodge or Nissan names (Dodsan?).
The Chrysler name will die. You can’t keep a brand alive for one vehicle (minivan).
The car lines and plants are doomed. When these vehicles are taken off the market (today they are giving them away), they will make room for other companies to sell quality cars at a profit and recover.
The existing Jeep, Dodge dealers have some hope if there is still a need for existing dealers as an outlet for Dodge Trucks & Jeep vehicles.
The existing truck plants will be picked up and run profitably on re-negotiated, less restrictive labor deals.
04/23, 11:50 AM
posted by:
carstuff
I do not see a one Europe car company. Perhaps 3-4.
VW/Porche/Audi
BMW-they probably need some hookup
MB
Fiat/Opel/GM
GM needs Opel for the midsize car engineering and will not want to give that up.
04/23, 12:13 PM
posted by:
global_lightning
This puts even more pressure on Chrysler. Fiat knows that Chrysler will not survive without their help; if Fiat walks, Chrysler dies. It would be to Fiat’s advantage to let GM and/or Chrysler to go into bankrupcy, then swoop in and pick off the carcasses.
04/23, 1:23 PM
posted by:
parts guy
Fiat+share in Opel+Saturn=a great shot for Fiat to have a successful return to the US market.
Fiat+Chrysler=RIP if the unions continue to indicate it is smarter to have no job than to share the pain to help Chrysler survive.
04/23, 2:44 PM
posted by:
Borat
carstuff, you forgot that there is France which accounts for 25% of cars made and sold in Europe. They are down due economy, but not out. GM already gave up Opel/Vauxhall. They can’t afford salaries.