This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8032213.stm
The article has changed 19 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Fiat could buy Vauxhall and Opel | Fiat could buy Vauxhall and Opel |
| (30 minutes later) | |
| Italian carmaker Fiat is in talks about buying the European business of General Motors (GM) - which includes the UK's Vauxhall and Germany's Opel. | Italian carmaker Fiat is in talks about buying the European business of General Motors (GM) - which includes the UK's Vauxhall and Germany's Opel. |
| Fiat is already trying to take over some of Chrysler, the US carmaker that has applied for bankruptcy protection. | Fiat is already trying to take over some of Chrysler, the US carmaker that has applied for bankruptcy protection. |
| And it said it was considering merging its carmaking business with those of Chrysler and GM Europe. | And it said it was considering merging its carmaking business with those of Chrysler and GM Europe. |
| Saab is also part of GM Europe, but may not be part of the discussions as it is being reorganised under Swedish law. | Saab is also part of GM Europe, but may not be part of the discussions as it is being reorganised under Swedish law. |
| Vauxhall employs about 5,000 people in the UK while Opel employs nearly 26,000 in Germany. | Vauxhall employs about 5,000 people in the UK while Opel employs nearly 26,000 in Germany. |
| Fiat Group chief executive Sergio Marchionne is meeting the German economy and foreign ministers and the head of the Opel works council to assess the viability of a deal. | Fiat Group chief executive Sergio Marchionne is meeting the German economy and foreign ministers and the head of the Opel works council to assess the viability of a deal. |
| In a statement, GM Europe confirmed that it was in talks with "several possible investors" some of who showed "good and realistic interest". | |
| But it declined to name any potential investors, saying it did not want to "speculate about the content of the talks between the German government and the Fiat management". | |
| Job risk? | |
| German union official Armin Schild, who sits on Opel's supervisory board was sceptical about whether Fiat would be an effective investor. | |
| "I can't say if Mr Marchionne is able to save Opel, but I know that Opel and Fiat are direct competitors, producing the same types of cars for the same market, so the merger of both companies could offer little to each other and take away a lot," he said. | |
| And the UK's Unite union said opposed Vauxhall being taken over by Fiat - claiming it would be an "unmitigated disaster" that would cost jobs. | |
| Professor Garel Rhys from the Cardiff Business School agreed that British jobs could be lost if the deal went ahead. | |
| Fiat are going to be a global powerhouse, I guess. Who would have thought? Erich Merkle, Car industry analyst Can Fiat put Chrysler on road to recovery? | Fiat are going to be a global powerhouse, I guess. Who would have thought? Erich Merkle, Car industry analyst Can Fiat put Chrysler on road to recovery? |
| "General Motors has indicated they have three plants too many and those three plants too many are actually in Germany, or run by the Germans", he said. | "General Motors has indicated they have three plants too many and those three plants too many are actually in Germany, or run by the Germans", he said. |
| "It could be that Fiat, knowing that the company is too big, would balk at taking on the Germans and might look for the softer option of closing a plant in the UK." | "It could be that Fiat, knowing that the company is too big, would balk at taking on the Germans and might look for the softer option of closing a plant in the UK." |
| Fiat chairman Luca Cordero di Montezemolo said Opel would be an "ideal partner" and that a takeover was an "extraordinary opportunity". | Fiat chairman Luca Cordero di Montezemolo said Opel would be an "ideal partner" and that a takeover was an "extraordinary opportunity". |
| 'Ideal partner' | 'Ideal partner' |
| GM faces potential bankruptcy in the US and has until 1 June to restructure. | GM faces potential bankruptcy in the US and has until 1 June to restructure. |
| Opel has said it needs 3.3bn euros (£2.9bn; $4.3bn) to get through the economic crisis, but the German government has encouraged it to find an investor. | Opel has said it needs 3.3bn euros (£2.9bn; $4.3bn) to get through the economic crisis, but the German government has encouraged it to find an investor. |
| It has said it does not intend offering Opel a bail-out, but that it would offer investors state support. | It has said it does not intend offering Opel a bail-out, but that it would offer investors state support. |
| Mr de Montezemolo told Italy's Corriere della Sera newspaper on Sunday that a Fiat takeover of Opel would create "a very strong group". | Mr de Montezemolo told Italy's Corriere della Sera newspaper on Sunday that a Fiat takeover of Opel would create "a very strong group". |
| But there has been some doubt about whether Fiat could cope with such growth. | But there has been some doubt about whether Fiat could cope with such growth. |
| "They're going to be a global powerhouse, I guess. Who would have thought?" said Erich Merkle, an independent auto industry analyst in Grand Rapids, Michigan. | "They're going to be a global powerhouse, I guess. Who would have thought?" said Erich Merkle, an independent auto industry analyst in Grand Rapids, Michigan. |
| "It'll make them a very large automaker, but we've seen that large isn't necessarily indicative of success." | "It'll make them a very large automaker, but we've seen that large isn't necessarily indicative of success." |
| Five years ago, GM paid $2bn to avoid having to take up an option to buy Fiat's carmaking business. | Five years ago, GM paid $2bn to avoid having to take up an option to buy Fiat's carmaking business. |
| GM challenge | GM challenge |
| In an interview with the Financial Times, Mr Marchionne said that buying Opel would be a "marriage made in heaven". | In an interview with the Financial Times, Mr Marchionne said that buying Opel would be a "marriage made in heaven". |
| However Canadian car parts maker Magna International has also put forward what the German government has called a "rough concept for a commitment with Opel". | However Canadian car parts maker Magna International has also put forward what the German government has called a "rough concept for a commitment with Opel". |
| German Economy Minister Karl-Theodor zu Guttenberg said that any investor would have to present a plan that kept Opel plants open in order to secure government support. | German Economy Minister Karl-Theodor zu Guttenberg said that any investor would have to present a plan that kept Opel plants open in order to secure government support. |
| Last week General Motors (GM) said it was to cut 21,000 US jobs in 2009 and phase out its Pontiac brand, as it aims to meet the deadline set by the US government to overhaul its business and show that it is viable. | Last week General Motors (GM) said it was to cut 21,000 US jobs in 2009 and phase out its Pontiac brand, as it aims to meet the deadline set by the US government to overhaul its business and show that it is viable. |
| It must complete its restructuring by then to gain the government loans it needs to avoid bankruptcy protection. | It must complete its restructuring by then to gain the government loans it needs to avoid bankruptcy protection. |
| Like US rivals Ford and Chrysler, GM has seen sales fall sharply in its core home market in recent years, a decline that has intensified as the recession has continued. | Like US rivals Ford and Chrysler, GM has seen sales fall sharply in its core home market in recent years, a decline that has intensified as the recession has continued. |