Fiat CEO meets with German chancellor regarding Opel bid

In an effort to show that it is serious about its bid, Fiat CEO Sergio Marchionne went to meet with Chancellor Angela Merkel earlier today to discuss Fiat’s proposal to buy General Motors’ Opel brand. Marchionne drove out of the chancellery in his black Fiat without talking to reporters. Merkel also made no public appearance.

It is reported that Economy Minister Karl Theodor zu Guttenberg also met with Marchionne. Guttenberg said yesterday that all three bidders for Opel – including Fiat, Magna International and RHJ International – need to improve their offers. He said they need to assume greater risk and make commitments to reserve jobs and plants.

“There’s no favorite,” Guttenberg told reporters. “Everyone knows that improvements are still necessary.”

Opel’s management, Germany’s government and other executives from General Motors will meet tomorrow to decided on the preferred bidder.

Fiat has made two bids for Opel; one with and one without an offer for GM”s Latin American operations.

– By: Omar Rana

Source: Reuters