• Financial Times, Monday, May 4, 2009 11 AM

Fiat CEO Sergio Marchionne wants Italy's largest industrial group to separate Fiat Auto from its other divisions, join them with Opel/ Vauxhall, Saab, and GM's other European operations, as well as Fiat's stake in Chrysler, to create a publicly traded company that would be second only to Toyota in revenues and sales and roughly the size of Volkswagen, report John Reed and Paul Betts.

"From an engineering and industrial point of view, this is a marriage made in heaven," Marchionne says. He is scheduled to present his plan to German government leaders Monday afternoon in Berlin. Fiat's move could spark further consolidation among competitors, but is likely to face political opposition in Germany.

If it clears antitrust, political, and other hurdles, the group would marry GM Europe's 10 plants to Fiat's 11 to create a pan-continental powerhouse that, with Chrysler, would be a big force in Europe, North America, and Latin America.

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