( CNN ) -- Fiat Group , fresh from an agreement to buy a piece of troubled automaker Chrysler , has plans to purchase GM Europe and spin off the recombined carmakers into a new company . Fiat 's update of the Cinquecento . The company says its small car expertise can help GM Europe get back on track . If successful , the new company would become one of the largest car manufacturers in the world behind Toyota . The combined company would generate about $ 100 billion annually with sales of between 6 and 7 million cars a year . `` Clearly they 're trying to take advantage of the opportunity when a lot of stakeholders may be willing to accommodate them , '' said John Bonnell , an auto industry analyst with JD Power and Associates . `` It may be their only opportunity to get to the kind of scale necessary to succeed in this market . '' In an interview with the Financial Times , Sergio Marchionne , chief executive officer of Fiat , detailed a plan to separate Fiat Auto core car divisions and join with Opel/Vauxhall , Saab and GM 's other European operations . Last week , Fiat agreed to take an initial 20 percent of Chrysler as the U.S. manufacturer filed for bankruptcy protection . `` It 's an incredibly simple solution to a very thorny problem , '' Marchionne told the Financial Times . Marchionne hopes to have the deal finished by the end of this month , and list shares for the new company -- which may be called Fiat/Opel -- by the end of August . Fiat has only recently gotten itself back on track . In his five years at the helm of Fiat , Marchionne has helped turn around the troubled Italian automaker . Analysts say its small-car technology can help Chrysler , known for its minivans . In the past five years , Fiat has been able to regain market share in Europe with its economy fuel-saving cars as well as its luxury line , Alfa Romeo . Marchionne is scheduled to meet with German government officials Monday to discuss the plan . Opel is GM Europe 's German unit . To secure the deal , Fiat is hoping to secure loans from the German government , raising concerns in Germany about helping to fund the Chrysler deal . The company plans to keep its plants operating in Germany , but will reduce workforce , which is likely to raise political concerns .
Fiat hopes to purchase GM Europe . The move comes a week after Fiat agreed to buy a stake in Chrysler . Comment: The new company , Fiat/Opel , would generate $ 100 billion a year .