Fiat is one of several potential buyers of part of Vauxhall/Opel.

Sources at the Opel works council, and officials in the German Government, have confirmed that Fiat has shown an interest in GM Europe.

They also revealed that Canada-based components supplier Magna is also interested.

GM Europe aims to attract investment by offering a stakeholding in its operations. It has already asked European governments for financial help.

Fiat played down the reports, as it is already focused on progressing a likely joint venture with Chrysler.

Chrysler has until the end of April to seal the alliance and secure US state aid, otherwise it may face bankruptcy.