Fiat/Opel talks

Fiat’s head will meet with German politicians on Monday to discuss a possible takeover of General Motors' Opel division.

According to reports in Saturday's Sueddeutsche Zeitung and Focus magazine, Fiat chief executive Sergio Marchionne will present his plan to acquire Opel to Germany’s economic minister Karl-Theodor zu Guttenberg and Foreign Minister Frank-Walter Steinmeier.

Klaus Franz, the workers' representative on Opel's supervisory board has confirmed the meeting, although he is not convinced Fiat ownership is a good idea.

A Fiat takeover would be "an industrial restructuring paid for with German taxes," he told the Associated Press. And yet, "we are not hostile to Fiat," he claimed.

Meanwhile, the business weekly WirtschaftsWoche claims that the Turin-based Fiat has already made an offer of one billion euros for Opel. Reports say GM considers that too low.

GM has been trying to dispose of non-profitable assets as part of a restructuring plan, in which it has already sought billions of dollars from the US government in an attempt to avoid a complete collapse.

German trade unions as well as the Social Democrats party claim a takeover of Rüsselsheim-based Opel by Fiat could lead to massive job losses. Fiat has said however it has no plans to close any of Opel's plants in Germany.

Opel dealers are skeptical of the Fiat deal as well. "There is at least some doubt whether a commitment by Fiat would be sustained," said Thomas Bieling, the spokesman for the Association of German Opel and Chevrolet Dealers. "With Fiat we don't see a concept."

Last week Fiat bought up 20 percent of American car manufacturer Chrysler, which filed for bankruptcy the same day. This Monday, the German carmaker Daimler announced it was going to give up its last remaining stake, 19.9 percent, in Chrysler. Daimler sold an 80.1 per cent stake to the private equity company Cerberus Capital Management in 2007.