Fiat Mulls New Alliance with Peugeot

Ferrari owner Fiat is close to parting from US partner General Motors Corp and is looking at the possibility of new alliances with other carmakers including Peugeot, a newspaper said on Friday.

Fiat Chief Executive Sergio Marchionne would start discussing a "divorce" with GM at a meeting on Dec. 14, Italian daily La Repubblica said. Fiat officials were not immediately available for a comment.

GM owns 10 percent of the Fiat group's car arm Fiat Auto and the two carmakers also have a number of joint ventures. Fiat has an option which could force GM to buy the rest of Fiat Auto from January but GM contests the validity of the option.

La Repubblica, quoting no sources, said Fiat could develop better synergies with Peugeot than with GM and the Italian carmaker did not rule out other possible alliances.

PSA Peugeot Citroen, however, said it has no plans to form an equity alliance.

"There is no plan for an equity tie with Fiat," a spokesman said, adding that existing cooperation between the two firms would continue. "We have worked in cooperation with Fiat for a long time. The arrangement has worked extremely well and will continue."