Fiat skipped talks in Germany today where it was meant to meet with GM and the local government. The Italian carmaker said it had not been granted full access to Opel's financial records and was not in a position to frame a proper merger proposal.
Speaking with Automotive News, Fiat CEO Sergio Marchionne said his company would be exposed to “unnecessary and unwarranted risks” if it was required to fund Opel on an emergency basis while the German government sets up its promised loans. Marchionne did, however, reveal that he was still interested in Opel.
The German government’s deadline for Fiat and Magna to come up with a preliminary deal for Opel ends today, and if no solution can be reached the possibility of insolvency is still open.
Back in the U.S., outgoing Chrysler CEO Bob Nardelli has revealed that Fiat’s alliance with his company could be completed by the end of today. The deal is waiting on bankruptcy courts in New York to allow the sale of most of Chrysler’s assets to Fiat, the U.S. and Canadian governments, and the United Auto Workers.
Standing in the way of the alliance deal is a group of Indiana pension funds, which holds secured loans with the struggling carmaker. The group argues that the deal unlawfully subordinates its senior claim on assets and that it was wrongfully influenced by the U.S. government. Fiat still has the option to walk away from the Chrysler deal up until June 15.