The German government has held talks today with Fiat CEO Sergio Marchionne over Opel's future with all parties describing them as constructive and more negotiations are set to follow tomorrow as the hours tick down to a bidder being chosen, according to media reports this afternoon citing inside sources.

"The German government has had constructive talks with Fiat Chief Executive Marchionne. The talks with Fiat and the other investors will continue. Mr Marchionne will stay in Berlin for further talks tomorrow," Reuters quoted an official, who requested anonymity, as saying today.

In an interview this afternoon with Bloomberg Television Marchionne also described the talks as being "constructive" and noted that the government was "seriously engaged in" the process of deciding Opel’s future. "We presented our case," he said, however admitting that "it’s a lottery right now" as to whether Fiat or its main rival, the Austro-Canadian vehicle components manufacturer Magna International, would emerge successful. "I will not say anything," Marchionne added. "I’m here seriously to try and get the deal done. If it gets done, it gets done. If not, I’m on a plane back to Detroit overnight."

Meanwhile Hendrik Hering, the Economy Minister of the Rhineland-Palatinate region, was highly dismissive of Fiat's bid in a phone interview today reported Bloomberg. "Whoever presents a concept with an unsound basis and then rushes to improve on it acknowledges that the plan was flawed in the first place," said Hering, adding that: "I can’t imagine" Fiat’s improved offer will be any improvement. He went on to say Magna's bid was "more profound" than the Italian offer as it will see the direct supply of vehicle components and it will allow Opel to develop new ties with other carmakers and suppliers. The Fiat bid, he said relied on "old concepts" and focuses on cutting production capacity to prevent model overlap.

Germany's Die Welt newspaper reported this morning that Fiat's proposal would see 1,600 jobs being cut from Opel's German workforce, while another 1,110 would be threatened. The newspaper added that up to 2,600 jobs could go if Magna takes control of Opel, without specifying where it had gained this information.

Armin Schild, a key IG Metall official and a member of Opel’s supervisory board expressed himself to be unhappy with the intense negotiations between the German government, Fiat, Magna and the third bidder, RHJ International. "What’s going on now is a glorified beauty contest that doesn’t help anyone," Schild said by telephone late yesterday from Gothenburg, Sweden, where he’s attending a meeting of the International Metalworkers’ Federation, reported Bloomberg. "It’s about creating a situation that doesn’t force a decision to be made under pressure."