Fiat SpA has neither confirmed nor denied its interest in General Motors Corp.'s German subsidiary Adam Opel, but on Friday the Italian automaker bristled when a top European official said he was surprised to see a company as indebted as Fiat entertain deals with Opel as well as with Chrysler LLC.
Guenter Verheugen, the European Union's industry commissioner, said in a radio interview Friday that he wondered where Fiat would find the money to pursue two deals at a time like this.
Fiat Chief Executive Sergio Marchionne said he was "astounded" by Verheugen's remarks, noting it was the second time the commissioner had suggested that not all of Europe's carmakers would survive this downturn.
"These comments are not helpful to the ultimate goal of re-establishing a sound footing on which to build the future of this industry," Marchionne said in a statement.
In the proposed deal with Chrysler, Fiat is offering technology and expertise but no cash in exchange for an initial 20 percent equity stake.
During Fiat's first-quarter earnings call on Thursday, Marchionne said that if an opportunity for a deal with Opel arose, he would "give it a very hard look." But, he added, "I don't think we're there today."
He said Fiat and Opel were not in direct talks, but a source familiar with the situation said Marchionne had broached GM directly about a deal for Opel.
GM is seeking outside investors for its German unit. But a GM spokesman declined on Friday to comment on Fiat's interest, saying only that automakers talk often -- and most of those talks do not lead to anything.
Speculation mounted, however, leading Italy's financial markets regulator Consob to seek some clarification from Fiat.
Fiat issued another statement Friday saying that, "except as already announced in relation to the strategic alliance with Chrysler, no offer has been made to acquire an interest in Opel."
For the first quarter, Fiat lost 410 million euros, or $530 million, compared with a 405 million euro profit a year earlier. Its net industrial debt increased to 6.6 billion euros, or $8.6 billion, at the end of March from 5.9 billion euros at the start of the year.
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