German labor boss says Fiat may take over Opel

Klaus Franz, works council chairman and deputy chairman of the supervisory board of Adam Opel AG, told the German press agency DPA the Fiat SpA plans to take a controlling interest in GM’s European brands. GM want to split off its Opel and Vauxhall lines and is looking for someone willing to make an investment.

Both Fiat and General Motors refused to comment on Franz’s statement.

This does not mean the end of Fiat’s proposed alliance with Chrysler. Fiat executives were already considering a move on Opel in addition to the Chrysler deal as Sergio Marchionne looks to put together what would be the world’s third-largest automaker after Volkswagen and Toyota.

While Fiat is expected to announce a sizable operating loss for the last quarter, the Italian automaker could raise as much as $13 billion through the sales of its CNH and Iveco holdings.