Fiat pursues GM Europe stake

Fiat has set its sights on becoming one of the world’s leading carmakers, signaling an interest in taking a stake in General Motors’ European business as it rushes to cement an alliance with Chrysler.

The Italian carmaker is among up to seven suitors for a stake in GM Europe, of which Germany’s Opel forms the largest part and which includes the UK’s Vauxhall, several government and car industry sources have told the Financial Times.

News of the interest comes as Fiat, whose chief executive Sergio Marchionne has declared the world’s oversupplied automotive industry ripe for consolidation, moves closer to a tie-up with GM’s rival Chrysler, which has six days to prove to the US government that it can become viable, or face bankruptcy.

“Fiat has expressed its interest to the German government," people close to Opel said on Thursday. Canadian car parts maker Magna International was also interested in GM’s European operations, said Hendrik Hering, economy minister for the German state of Rhineland-Palatinate. More at FT.com