Moscow, Russia – Russian carmaker GAZ may be interested in creating a joint venture with Opel and Magna International, according to Automotive News Europe. The news agency said that Magna is competing with Fiat for GM’s European business, which is centred around Opel.

Both companies have presented proposals to the German government, which has been asked to provide financial guarantees for Opel by General Motors.

GAZ, which is reportedly about €1 billion in debt, has denied involvement in any bidding process and said it does not need Opel while it reshapes its Russian operations.

German media reports suggest that a car giant comprised of Magna and GAZ could produce up to five million vehicles a year.

Fiat, meanwhile, is seeking a three-way merger with Chrysler and with General Motors’ European operations.

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