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Fiat told an Italian newspaper this morning that it thought it had a more than 50 per cent chance of becoming the new owner of GM's European brands Opel and Vauxhall because the other two contenders for the group did not have its auto manufacturing expertise.

Three bids were put in for the businesses by the deadline of six o'clock Eastern US time yesterday. Apart from Fiat, the other bids come from the Magna components group, which has some carmaking experience through its Austrian Magna Steyr operation, and the Brussels-based industrial holdings group RHJ International.

The bids are to be decided by the German government, which has pledged money to support whoever takes over Opel, and General Motors itself. A deal is likely to be done quickly, because GM will want the money to be there in time for its own possible bankruptcy, likely at the end of May.

Fiat would merge its own car business with that of Opel, with possible casualties in terms of plants in both Italy and Germany, and perhaps elsewhere. Reuters is reporting today that the Fiat bid is not favoured by GM insiders, because of the Italian group's links to Chrysler.

Magna is being backed by the Russian Gaz group as its "industrial partner".

Saab, GM's other European operation, is not linked into any sale of Opel and Vauxhall, though Fiat has also expressed an interest in acquiring it.