GM talks in doubt as Fiat pulls out

Fiat is one of only two bidders for GM Europe, which is on the brink of sinking alongside the American parent company unless a buyer can be found.

And although Fiat signalled it was still interested in reaching a deal, a spokesman for German Chancellor Angela Merkel indicated a reluctance even to resume stalled negotiations in Berlin if Fiat did not turn up.

The only other bidder is Canadian car parts maker Magna, and the latest hitch came as EU industry ministers gathered in Brussels to press the case for a German deal which takes account of Opel and Vauxhall jobs around Europe and not just the fate of workers at the car giant's plants in Germany.

Ms Merkel's spokesman made clear there was no point going ahead with talks unless all parties had something to contribute.

But time is running out, with GM America signalling the start of bankruptcy proceedings possibly before the weekend regardless of the state of German efforts to safeguard GM Europe's future.

At the minimum, said German officials, there would be some level of meeting in Berlin to review the situation.

And in Brussels the European Commission was pressing ahead with talks designed to reassure other EU countries with a GM stake that their problems would be considered before any deal - if one was possible - was done.