Fiat Smiles Again, Germany Says Opel's Selling Reopened

Things are getting better for Fiat after the company a few days ago finalized the strategic alliance with Chrysler and Sergio Marchionne has been appointed CEO of the new Chrysler. It might seem like the long dispute between Magna International and Fiat is far from being over, as Germany's economy minister says he's still in talks with other interested parties which means the auction process has been reopened.

In other words, recent reports claiming that Magna is not yet the new Opel owner and Fiat might still have a chance appear to be true. Lord Mandelson, the UK's business secretary, emphasized that Opel/Vauxhall only reached a memorandum of understanding with the Canadian - Austrian parts manufacturer but negotiations with other bidders have continued.

Furthermore, the German minister also confirmed that a Chinese company expressed its interest in taking over Opel, but refused to reveal its identity. Recent media reports hinted that BAIC made an enquiry for the German unit but there's no official confirmation.

"It is impossible to predict conclusively if the memorandum of understanding that we have now will translate into final agreement. We hope it will. But, we also have to keep our mind open to alternatives if that memorandum of understanding does not convert into a final agreement. We are agreed on that," Lord Mandelson was quoted as saying by autocar.co.uk.

Still, we're not sure whether this thing is 100 percent true or the governments of the two countries involved in the selling process, the UK and Germany respectively, are trying to pile up the pressure on Magna to complete the deal. The Canadian - Austrian company said it intends to inject around 700 million euros in Opel and maintain German operations but admitted job cuts might be applied in overseas plants.