Fiat CEO sees union snags but time for Opel deal

[Omaha Steve]

Source: Reuters

TURIN, - Despite major social problems, now is the moment to create a big European car maker by combining Italy's Fiat SpA (FIA.MI) with the European operations of General Motors (GM.N), including its German brand Opel, Fiat's Chief Executive said on Saturday.

Speaking on the sidelines of an event in Turin, CEO Sergio Marchionne said it was important to be upfront on the problems of creating such a group and how to deal with them, including negotiating with trade unions.

"The important thing is to be absolutely honest on the problems and how to deal with them. It is a very big European challenge," he said.

"If we succeed in pulling together the social aspects, we will succeed in finding a great solution for Europe," he said on Opel and trade union worries over possible plant closures.



Read more: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL925604320090509

[CHIMO]

1. Fiat unveils takeover plan for Opel

The economics minister said Marchionne was looking to finance the deal without burdening what would be the Italian parent company with extra costs:

"Fiat wants to complete the deal without taking on additional debt," he said. "Transitional financing would be paid for with General Motors debt and the liabilities of the GM pension fund."

Fiat estimates this figure to be between five and seven billion euros, Guttenberg said.

Germany has also said it is prepared to provide up to 3.3 billion euros in interim financing guarantees. Marchionne said he wanted a decision within 30 days.

http://www.dw-world.de/dw/article/0,,4227294,00.html

He wants it without paying a penny. Going after the government and the union pension.