Fiat Said to Study Use of Designs From GM’s Opel for Chrysler

(Bloomberg) -- Fiat SpA may use designs or technology from General Motors Corp.’s Opel in future Chrysler LLC models as part of a global auto alliance, people familiar with the discussions said.

The talks involve folding GM and Fiat’s European and Latin American operations into a new company, said the people, who asked not to be identified because details aren’t public. GM wants 40 percent of the new company, while Turin, Italy-based Fiat’s preference is to give 30 percent, two people said.

Adapting Opel designs for Chrysler vehicles would form a tight link between GM and the Fiat-Chrysler venture, spreading costs among more models to save money. Global sales for GM, Fiat and Chrysler were about 12.4 million in 2008, topping the 8.97 million of Toyota Motor Corp., the world’s largest automaker.

GM needs a partner to run Germany’s Opel, maker of the compact Astra and midsize Insignia sedan, before June 1 to keep the unit from running out of cash. June 1 is also the deadline by which Detroit-based GM may file for bankruptcy in the U.S.

Bids are due next week for Opel, said John F. Smith, GM’s group vice president for product planning. Fiat has been asked to use that schedule for any offer, whether it’s just for Opel assets in Europe, including the Vauxhall brand in the U.K., or other regions, said Smith, who wouldn’t identify other bidders.

Gualberto Ranieri, a Fiat spokesman, declined to comment on talks with GM, the largest U.S. automaker.

Sharing Technology

The possibility of a GM-Fiat-Chrysler connection via Opel stems from GM’s plan to keep a technology-sharing arrangement that includes using designs from the German unit across models such as the Chevrolet Malibu and the new Buick LaCrosse.

GM is trying to cut $1.2 billion in costs and win 3.3 billion euros ($4.5 billion) in European aid to keep Opel operating independently of U.S. operations. Russelsheim, Germany-based Opel began as a manufacturer of sewing machines in 1862 and became a carmaker before GM bought it in 1929.

Fiat, which plans to take a 20 percent stake in bankrupt Chrysler, is studying whether to use Opel designs to help rejuvenate the U.S. automaker after it leaves court protection, the people said. GM assessed sharing car designs during merger talks with Auburn Hills, Michigan-based Chrysler last year, another person said.

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