TURIN, Italy, April 24 (UPI) -- Fiat is expected to sign a letter of intent to buy most of General Motors Corp.'s European subsidiaries Opel and Vauxhall, sources told Der Spiegel.
The German magazine reported Friday that the Italian automaker's chief executive officer Sergio Marchionne, was expected to forward an offer for a majority stake in the companies.
Opel and Vauxhall sell 1.5 million vehicles a year. Fiat, which includes Alfa Romeo and Lancia brands, sells 2.2 million cars a year.
GM, once the largest carmaker in the world, is on the verge of bankruptcy and trying to cut expenses to qualify for continued federal aid in the United States.
From the U.S. perspective, however, Fiat has also been immersed in talks to take over about 20 percent of Chrysler LLC, which is also close to bankruptcy. The Chrysler deal, which involves no cash, involves Fiat taking over U.S. factories and gaining greater access to U.S. markets.
Klaus Franz, who represents Opel employees in Germany, said Fiat's brands are close to Opel's, which would lead to a "drastic reduction in jobs."
Workers would oppose the deal, he said.
