Filed under: Euro, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Opel, FIAT
Fiat's bid for
worldwide domination of the automotive industry has seen a bit of a snag in Germany, where government officials are said to be balking at the Italian automaker's plan to
take over GM's struggling Opel brand. Fiat CEO Sergio Marchionne sounds confident that his plan is the best way forward for Opel, saying:
"I'm offering the German government a car business that will be effectively debt-free and I will take on Opel's liabilities, including pensions. I told them: if you have a better offer, take it."
Indeed, the German government may do just that. A competing
bid from auto parts supplier Magna International is said to be the more attractive proposal from Germany's standpoint since it would likely offer guarantees that manufacturing sites in Germany, Belgium and England would remain humming along at full capacity.
Fiat's plan would rely heavily on the expected cost savings realized by combining all of its various automobiles on a single set of platforms - a process that would almost assuredly also dictate a corresponding loss of jobs.
[Source:
Automotive News - Sub. Req'd | Image: AFP/Getty]
Marchionne to Germans: If you have a better offer for Opel, take it originally appeared on Autoblog on Fri, 08 May 2009 19:00:00 EST. Please see our terms for use of feeds.
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09-05-2009, 02:10 AM
