Fiat to capture the Griffin?

Just days after tying the knot with bankrupt maker Chrysler, Fiat is sensationally set to jump into bed with another of the troubled US Big Three: General Motors. According to reports, the Italian maker is keen on taking over GM's European arm, which means Vauxhall is in its sights.

And while the thought of Prancing Horse-inspired Griffins certainly is an intriguing one (Fiat Group owns Ferrari), there are already fears that an Italian takeover could jeopardise British jobs.

Under the restructuring plans GM has been forced to make as part of the US Government 'bailout' deal, the American maker is under pressure to sell its European brands - and GM Europe has confirmed that it is in talks with “several possible investors.”

Talks are already underway between Fiat and Opel in Germany, with Germany's Economy Minister Karl-Theodor zu Guttenberg describing Fiat's involvement as “interesting,” but stressing that a takeover would only occur if Opel's three main manufacturing plants were kept open. The UK will undoubtedly push for a similar stipulation, but it cannot be guaranteed.

Vauxhall has 5,000 employees in the UK, and workers' union Unite has already opposed a Fiat takeover, saying it would be an “unmitigated disaster.” And according to Cardiff Business School's Professor Garel Rhys, the fact that the German Government would insist on its plants staying open means that Fiat “might look for the softer option of closing a plant in the UK.”

General Motors has until June 1st to restructure under the terms of the bailout, so there'll be plenty of twists and turns until that date, though Fiat seems set on a deal, with Fiat Group CEO Sergio Marchionne calling a union with GM a “marriage made in Heaven.”

Mark Nichol