Opel sale could mean 11,000 jobs losses in Europe with UK Vauxhall plant at risk
Italian Finance Minister Giulio Tremonti said Fiat may have lost out in its bid for the Opel unit of General Motors because it played by market rules and didn't seek government help with the offer.
Canadian auto-parts maker Magna International was chosen by German Chancellor Angela Merkel to buy Opel in a rescue backed by state-run Russian lender OAO Sberbank.
The deal comes just days ahead of a likely bankruptcy filing by the General Motors.
Fiat informed the Italian government of its bid "but did not ask for anything," Tremonti said, adding that the Turin-based carmaker "went to Germany to play according to market rules".
Had Fiat chief executive Sergio Marchionne approached Silvio Berlusconi about the bid, the Italian prime minister "could have done a lot, using his influence," Tremonti said.
Merkel's government chose Magna International as the buyer for General Motors' Opel and confirmed a financing plan aimed at helping the money-losing unit avert insolvency.
Germany will provide a €1.5bn loan to keep Opel afloat.
Officials said as many as 11,000 jobs may be lost across Europe, including 2,600 in Germany.
German Finance Minister Peer Steinbrueck told reporters: "We have a high interest in maintaining employment at all four Opel sites."
GM is selling a majority stake in Opel, including the Vauxhall brand in the UK, as part of a global reorganisation before a US government-imposed June 1 deadline to restructure.
Germany, which led the search for an investor, has a say because of GM's request for loan guarantees.
British Business Secretary Peter Mandelson said he had received a "firm" commitment that Vauxhall production would continue in the UK, but conceded a rescue deal for the company contains no details of potential job losses.
Union bosses and MPs have warned that the deal to save Vauxhall and its sister company Opel could see German jobs safeguarded ahead of those in the UK. (Bloomberg)
