FIAT appears to be casting covetous eyes over the European arm of General Motors – and the unions are worried about what the future might hold.

Their fears are justified. In these ongoing recessionary times, there is already over-capacity among Europe’s car plants, and Fiat’s proposed takeover would do nothing to improve the situation.

Where do Fiat’s loyalties lie? One suspects the United Kingdom comes some way down the list behind Turin.

General Motors’ Vauxhall plant, in Ellesmere Port, has been under a shadow for some considerable time, as GM continues to struggle in the United States, allegedly facing the constant spectre of bankruptcy, as has happened over the past week or so to Chrysler.

The Government has remained on the sidelines, despite GM’s long-term insistence that they don’t need a bail-out funded by public money, but rather assistance to help ease their difficulties.

Now Fiat’s proposals increase the possibilities of an industrial White Knight arriving in a silver Punto with some kind of solution to the crisis, but it is a long way from the remedy preferred both by union officials and the workforce.

Vauxhall’s Ellesmere Port plant is one of the most efficient in Europe. Fiat, whatever their thinking, would be stupid to throw all of that away on the altar of rationalisation. But perhaps nothing can be ruled out in the topsy-turvy conditions currently governing the market.

All the workforce at Ellesmere Port, many of whom have faced cuts in hours in order to reduce production, need a solution to the problems facing GM.

Whether Fiat’s plans provide the answer must surely be in considerable doubt.