MILAN (AFP) -– Italian industry giant Fiat reported a heavy loss on Thursday but still looked a possible savior for other struggling car makers through a planned tie-up with Chrysler and a rumored takeover of Opel.

Fiat Group reported a first-quarter loss of 411 million euros (537 million dollars). The results were accompanied by talk of Fiat's ongoing negotiations with troubled U.S. auto maker Chrysler, as an April 30 deadline loomed, set by the U.S. administration, for the two to strike a deal.
“We continue to make progress” in negotiations with Chrysler, Fiat's chief executive Sergio Marchionne told a telephone conference, adding that he saw “no reason” why the tie-up would not go ahead.
Marchionne even left the door open to possible investment in Chrysler later on, while stressing no such move was planned in the current agreement on the table. “We can commit cash at the relevant time if needed,” he said, although the deal currently on the table includes “no cash investment or commitment to fund Chrysler in future.”
Under the deal, Fiat would initially take a 20 percent stake which would then rise to 35 percent and could eventually reach 51 percent, Marchionne said.
According to details of a preliminary deal signed in January, Fiat would pay nothing, but would provide access for Chrysler to its technology, notably for smaller, more economical vehicles.
The U.S. administration has given Chrysler until April 30 to sign a deal or have its bailout money cut off, which could lead to the company's collapse.
A media report in Germany meanwhile appeared to burnish the once-struggling Italian company's new image as a potential white knight during treacherous times for auto makers.
German magazine Der Spiegel reported in its online edition that Fiat could take a majority stake in Opel, a German unit of another troubled U.S. auto giant, General Motors.
Dow Jones Newswires cited an unnamed source as saying that Marchionne met last week with German Economy Minister Karl-Theodor zu Guttenberg, who is leading the German government's search for a new investor in Opel.
Marchionne, questioned about Opel, stressed that his priority was wrapping up talks with Chrysler. “I've nothing to announce,” he told a conference call. “We have not (had) any direct conversation with Opel.”
He added: “If the opportunity arises … we'll give a very hard look, but I don't think we are there today.”
Der Spiegel said a deal could be signed as early as Tuesday but that Opel staff were opposed because they feared the takeover could lead to job cuts.
Fiat's earnings statement on Thursday said it had faced “difficult market conditions” and “demand volatility” in the auto market but expected “an improvement in the remainder of the year, as trading conditions stabilize.”
Milan-based analysts told Dow Jones Newswires that Fiat's results were bad but better than expected. Fiat Group shares on the Milan stock exchange closed down 0.80 percent to 7.42 percent after the announcement.
Fiat also said on Thursday that it would cut 10 to 15 percent of administrative jobs at its loss-making U.S. subsidiary CNH, an agricultural and construction equipment maker that employs around 10,000 administrative staff. The cuts could therefore affect up to 1,500 jobs.
In Thursday's earnings report, Fiat Group Automobiles reported an operating loss of 30 million euros and a 17.6-percent production decline on a 12-month comparison but said that “demand trends improved during the first quarter.”
The company said its car market share went up in France, Germany and Italy, and car scrapping incentives in France and Germany helped boost sales. But it lowered its net profit forecast for 2009 from 300 to 100 million euros.