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Fiat aims for Opel deal without running up debt

 Sergio Marchionne, Manager of Italian Fiat car company, leaves after a meeting with German Economy Minister Karl-Theodor zu Guttenberg in Berlin,  Mo...
 German Economy Minister Karl-Theodor zu Guttenberg speaks during a news conference after a meeting with Sergio Marchionne, Manager of Italian Fiat ca...

Germany Fiat Opel

Sergio Marchionne, Manager of Italian Fiat car company, leaves after a meeting with German Economy Minister Karl-Theodor zu Guttenberg in Berlin, Mo...

Germany Fiat Opel

German Economy Minister Karl-Theodor zu Guttenberg speaks during a news conference after a meeting with Sergio Marchionne, Manager of Italian Fiat ca...

Fiat Group SpA aims to take over General Motors Corp.'s main European unit without running up debt in a deal that could require billions of euros (dollars) in government loan guarantees, Germany's economy minister said Monday.
Fiat's concept _ part of a wider plan to build a global powerhouse also including Chrysler _ foresees keeping the Opel brand and the unit's three assembly plants in Germany, Economy Minister Karl-Theodor zu Guttenberg said after meeting Fiat CEO Sergio Marchionne.
However, he said there would be a "need for consolidation" and made clear that the future of an engine plant in Kaiserslautern, Germany would be in doubt.
Asked what the plan might mean overall in terms of job losses or plant closures, Guttenberg said Marchionne "hasn't offered any specific numbers yet, but he described them as not being too dramatic."
GM has been trying to find investors for its noncore and unprofitable assets to help stave off collapse. Germany and other countries are keen to safeguard the future of its European operations; GM says it has some 54,500 employees in Europe.
Guttenberg said that "Fiat wants to get into this deal without debts of its own."
He said the Turin, Italy-based company estimates the short-term financing needs that would arise at some


Updated : 2020-11-30 10:08 GMT+08:00