Fiat Denies Rumors, Says Not Interested in Opel

Following a report that Fiat may turn its attention on Opel in case the Chrysler alliance becomes impossible, Fiat Chairman Luca Cordero di Montezemolo came out and denied the speculation, saying that his company is not even close to being interesting in a deal with the German unit. This week's reports said Fiat may pull out of the Chrysler partnership in case the American auto giant doesn't reach an agreement with the Canadian Auto Workers (CAW) but an official decision is yet to be announced.

Montezemolo promptly denied the report issued by Correre della Sera, saying that Fiat isn't looking at Opel as a potential replacement for Chrysler, Autonews wrote. "They've written about it in the newspapers? No, no," the Italian official said.

Meanwhile, General Motors is still seeking an outside investor for its German unit which, in its turn, demands government support to get through the crisis. Opel said it needs up to 3.3 billion euros from European states, but discussions with the German government are still under way.

As part of the Fiat - Chrysler alliance, the Italian manufacturer would get up an up to 35 percent stake in the American company, plus the possibility to launch its own models in the country and distribute them using Chrysler's dealership network.

"The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved,” the CEO of Fiat Group, Sergio Marchionne said.

"The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies."