Fiat vs. Magna in Opel Majority Stake

Although nobody knows for sure whether the German automaker Opel can get through the crisis as an independent company or under General Motors' umbrella, Fiat and Magna are now challenging one another to get the controlling stake. While rumors regarding a possible Fiat bid for Opel surfaced a long time ago, we learned yesterday that Magna International and Russian oligarch Oleg Deripaska are now targeting a majority stake in Opel.

According to Autonews, Magna would purchase up to 20 percent while Deripaska, with the help of Russian banks, would purchase the remaining 30 percent to reach a controlling stake.

An interesting thing comes from Fiat though because even if the company promptly denied reports talking about its interest in Opel, it appears that the Italian manufacturer is indeed aiming to purchase the German brand. It may seem like Fiat also proposed to build the Punto in Opel's plant in Eisenach which obviously helps the German manufacturer preserve jobs in the country and maximize the plant's production capacity.

Meanwhile, Fiat is closely negotiating the strategic alliance with American automaker Chrysler, with a bunch of reports claiming that around 90 percent of the deal has already been completed.

"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."