New York: Beleaguered General Motors is looking for a stake in Italian car maker Fiat in exchange for the auto giant’s Latin American and European operations, says a media report.
“Four years after paying $2 billion to extricate itself from a partnership with Fiat, General Motors is seeking a stake in the Italian automaker in exchange for its Latin American and European operations,” The New York Times has reported.
The daily said GM is eager to cede control of its money-losing Opel unit in Germany.
“But Fiat has also expressed interest in GM’s other European operations as well as its historically profitable Latin American business, though the possible terms of such a deal have not been discussed publicly,” the report published online noted.
According to the publication, despite the precarious financial situation, GM now feels that it has a bargaining chip with its Latin American unit, and is negotiating with Fiat over what it might get in return.
Fiat’s chief executive Sergio Marchionne has indicated a willingness to give up less than 10% of Fiat to GM, it added.
“But GM executives are holding out for at least 30% of the Fiat Auto Group,” the daily said quoting two people close to the negotiations.
Further, attributing to the two people, the New York Times said they were not authorised to comment publicly because the discussions are fluid.
“The discussions are the latest development in Fiat’s multi-pronged bid to grow, almost overnight, into a dominant global auto company, by acquiring Opel and a 20% stake in Chrysler,” the report noted.