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While Fiat and Chrysler are desperately trying to secure an alliance here in the United States, the Italian side of the duo is also reportedly considering an alliance with General Motors' core operations in Europe and Latin America. If all goes ahead, a merged Fiat and Chrysler, along with the GM operations, would become the world's second-largest auto group.

The latest information comes from a source familiar with the matter, who revealed to Automotive News that talks between Fiat and GM are in the early phase and are not an alternative to Fiat's ongoing negotiations with Chrysler. The GM operations involved would include the Opel and Vauxhall brands in Europe and GM Latin America in South America. Not included is Saab and Chevrolet's European operations.

A revised restructuring plan laid out by GM CEO Fritz Henderson on Friday revealed plans to change the Opel and Vauxhall brands into a separate unit, while also acquiring a new investor involved. Henderson also revealed that there are a total of six investors keen on the Opel and Vauxhall brands but stated they were “financial and industrial players.”

This means that Fiat is unlikely to acquire a stake in GM’s European operations anytime soon but there may still be the possibility of a revival of GM and Fiat’s deal from nine years ago, which saw GM acquire 20% of Fiat and the two companies combine their European and Latin American purchasing and powertrain operations, as well as jointly develop a compact car platform.