GM wants a slice of the Fiat presunto: NYT GM wants 30 pct stake in Fiat car business.
Fiat only wants to give up 10 pct
GM sees its Latin American business as a bargaining chip because it is profitable
GM eyes Fiat Auto stake - NY Times
Thu May 7, 2009 10:21am BST
* GM wants 30 pct stake in Fiat car business - report
* Fiat only wants to give up 10 pct - report (Adds MILAN dateline, plant shrinkage report, details)
MILAN, May 7 (Reuters) - U.S. car maker General Motors Corp (GM.N: Quote, Profile, Research) is eyeing a stake in Fiat SpA's (FIA.MI: Quote, Profile, Research) car business in exchange for its European and Latin American operations, the New York Times reported on its website.
As part of a massive restructuring to stay in business, GM is in talks with the Italian company about the sale of the U.S. car maker's German unit, Opel, which could eventually lead to plants being shrunk across Europe, according to a German newspaper.[ID:nL7323386]
GM wants at least 30 percent of Fiat's car business, known as Fiat Group Automobiles, the New York Times said, citing people close to the negotiations.
Fiat Chief Executive Sergio Marchionne, meanwhile, is willing to give up less than 10 percent, the people said.
GM sees its Latin American business as a bargaining chip because it is profitable. The biggest market in the region, Brazil, is also important for Fiat because it is responsible for nearly all of the profit earned at its car business.
A Fiat spokesman declined comment, while GM could not be immediately reached for comment by Reuters.
Fiat shares were off 0.76 percent at 7.825 euros in Milan
uk.reuters.com |
