Italian automaker Fiat chief denies GM pullout

ROME, Nov. 27 (Xinhuanet) -- Italian automaker Fiat chief Luca Cordero de Montezemolo denied on Saturday rumors that US car giant General Motors is planning to pull out of the Italian carmaker.

Montezemolo described rumors that world No. 1 GM might sell itsstake and waive an option to buy the rest as "just chatter."

One of Fiat's main creditor banks in its current re-launch, Unicredit, said it did not believe a report that GM was planning to pull out as Fiat forged an alliance with French carmaker Peugeot.

Fiat denied on Friday the press report that it was considering ditching GM for a European partner such as Peugeot.

A spokesman for the Turin-based automaker said Fiat and GM enjoyed an "industrial and financial alliance" and that it was notengaged in talks aimed at forming a similar partnership with alternative car makers.

"This is press speculation which has no bearing on reality," the spokesman said.

Italian daily La Repubblica triggered the denials with a report on Friday saying Fiat was "heading for a divorce" with GM and thatFrance's Pegueot was shaping up as the most likely replacement.

In March 2000, Fiat sold 20 percent of its car unit Fiat Auto to GM.

Montezemolo stressed last month that the alliance with GM was aprofitable one which had produced significant cost-saving advantages. Enditem �@