Fiat to skip German govt's meeting on Opel funding

Italian car maker Fiat, which is in the race to acquire Opel, has pulled out of talks called by the German government to discuss immediate funding for the German auto maker.

The meeting has been scheduled in the wake of growing concerns that Opel would need emergency funds if its US-based parent firm General Motors files for bankruptcy next week.

"Fiat has decided not to attend the meeting tentatively scheduled by the German government in Berlin on Friday, May 29 that has as its sole topic the emergency funding of Opel," Fiat said in a statement today.

Reiterating is interest in Opel, the Italian firm noted that German government's demand for additional funds is unreasonable.

 

Fiat said it is unreasonable to ask the company to fund Opel on an emergency basis "while the German government determines the exact timing and conditions of the interim financing, would expose Fiat to unnecessary and unwarranted risks".

"Fiat has been unable to have full access to the financial records of Opel to determine its precise financial condition and thus properly frame a merger proposal that would be fair to General Motors as the seller and to Fiat," Chief Executive Officer of Fiat Sergio Marchionne said.