Fiat SpA CEO Sergio Marchionne approached PSA Peugeot Citroen and General Motors earlier this month about a pan-European combination that would leapfrog Volkswagen AG as the region's largest automaker, three people familiar with the matter said. Marchionne proposed that Peugeot commit to a combination between Fiat, the French carmaker and GM's German Opel unit in exchange for stock in the new entity, said the people, who asked not to be named as the proposal was private.
The CEO also offered to take Opel as part of the deal if he got $5 billion to $7 billion to restructure the unit, two of the people said.
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