General Motors says it remains committed to its struggling Opel division, refuting reports that the European division could be sold to Fiat.
"Opel is not for sale. GM fully stands behind Opel," GM Vice Chairman Stephen Girsky said in a statement on Friday.
Girsky's words were in in response to an article from Italian daily Il Sole-24 Ore claiming that Fiat was planning to enter talks with GM to buy the Opel division. Fiat attempted to purchase Opel during GM's brief bankruptcy in 2009.
"Marchionne's plan is to get Opel practically free, not unlike what happened with Chrysler and not unlike its offer for Opel in 2009," Il Sole-24 Ore said.
Earlier this year investment firm Morgan Stanley suggested that selling the flagging division could be GM's best bet for recovery in Europe. The Opel unit has lost $16 billion over the last 12 years and is projected to lose at least $1 billion each year through 2021, according to Automotive News.
Although Fiat isn't necessarily in a great position to take on a money losing unit – Fiat has been one of the hardest hit by the European downturn – the company does have an adequate cash stockpile thanks to the improved performance of Chrysler. However, it remains to be seen if GM will change its mind and ultimately put Opel up for sale.
