Fiat may buy Opel from GM, spin off auto unit

Fiat SpA, the Italian carmaker taking a stake in Chrysler LLC, may spin off its automobile division following a purchase of General Motors Corp's European unit.

CEO Sergio Marchionne will seek over the next few weeks to assess the viability of a combination and a new company, the board of the Turin, Italy-based carmaker said on Sunday.

GM says it's open to offers for the Germany-based Opel division, which is running out of cash and seeking 3.3 billion euros ($4.4 billion) in German aid. Another potential investor is Magna International Inc, North America's largest auto-parts maker.