Fiat CEO Sergio Marchionne is convinced that a merger of Fiat Group's car business with Opel is the best chance of survival for General Motors' German subsidiary.
Marchionne says his plan, which is called Phoenix, could save at least 1 billion euros a year, mostly by sharing platforms in volume segments.
Fiat also wants to use Opel's new Astra and Insignia platforms for its cars.
Marchionne has argued that a carmaker must make more than 5 million vehicles a year to be able to make a profit and said last year Fiat lacked the scale needed to survive the sector crisis alone.
Here are key facts of Fiat's Opel takeover proposal:
Proposed combination includes the Opel and Vauxhall brands, GM Mercosur (Brazil, Argentina, Uruguay, Paraguay) and GM South Africa. Also includes Fiat group brands Fiat, Alfa Romeo, Lancia and Fiat's van unit, while excluding Maserati and Ferrari.
Combined revenues are set to rise to 58 billion euros in 2010, 65.3 billion by 2014, incremental cumulative net cash flow would be 5.6 billion euros in 2009-15; recurring savings after 2015 of 1.4 billion.
Combined entity will need funding of about 7 billion euros over the next two years, assuming no cash or financial debt contributions from Fiat or GM.
Plan will require finding "another production mission within Fiat Group" for its factory in Termini Imerese, Italy, and "another mission" for Vauxhall's plant in Luton, England.