Fiat’s expansion plan is not just limited to buying 20 per cent stake in Chrysler but they have gone beyond it. The Italian Auto makers are looking forward to acquire. General Motors’ European operations, including Opel, Vauxhall and even Saab – this is the latest news in the auto industry.

If the reports are true, the Fiat, along with Chrysler and GM Europe, are going to become one corporate entity worth about 106 billion dollars, which means they become the second largest automakers in the world after Toyota.

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The U.S. Treasury has clarified guidelines for its auto industry rescue plan. The treasury says that there is a possibility to invest in debt, warrants or equity that would be determined as troubled assets of some automaker company.

According to the treasury, these guidelines for Auto Industry Financing Program will be applied to all those auto firms that it will reckon important for the industry including Detroit automakers and other auto finance companies.

Under these guidelines, a proper structure has been offered to a $17.4b rescue plan for GM and Chrysler LLC that was rushed into effect by the Bush administration on Dec.19. The plan was supplemented with $6b for finance companies aid later on.

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