Frankfurt - German labour leaders voiced outrage Friday at reports that Fiat, the Italian company seeking control of Chrysler, may have an alternative plan to acquire General Motors' Opel and Vauxhall brands in Europe.

Guenter Verheugen, a German who is the European Union's top industry official, scoffed at the plan, telling a German TV channel, "I wonder where this heavily indebted enterprise is going to get the funds to tackle two such operations at the same time."

The industry commissioner told Bavarian Broadcasting that Fiat was a direct rival to Opel and "not exactly the European carmaker that is doing the best."

Fiat is one of several companies reportedly eyeing GM Europe, though US news reports said this appeared to be Fiat's plan B if no deal could be reached to acquire US carmaker Chrysler.

The German government was non-committal about the many-sided negotiations, saying only that it was insisting that the lead investor offer a sustainable plan and retain Opel's German factories and workforce.

It said a senior Berlin official, Jochen Homann, a state secretary in the Economics Ministry, was in Washington for talks on Opel.

IG Metall, the main union at the Opel factories, said it was firmly opposed to Fiat becoming the new proprietor, whereas it would welcome Magna, a maker of auto components, as an investor in Opel.

The top IG Metall official dealing with the crisis, Armin Schild, said there were other potential investors. But he told ZDF television news he must remain discreet and could not identify them.

The labour groups' criticism of Fiat has focussed on the fact that both companies sell low-priced cars. Unionists believe the Italian company would be bound to try to scrap Opel models which were in direct competition to its own Fiat models. (dpa)