Zu Guttenberg reported that Marchionne would like to initiate the new venture free of debt, but Sanford Bernstein analyst Max Warburton warned, "Given the loss-making status of all three parts of the combination, the new auto business will need cash injections to be viable." He added, "We remain unconvinced that Fiat has the management depth to pull off this very ambitious task, although we acknowledge that the company clearly keeps its talent obscured."

Elsewhere, German labor unions aren't exactly thrilled with the notion of Fiat acquiring Opel, since such a move would likely necessitate job cuts and plant consolidations.

In other GM news, the automaker is reportedly "receiving interest from multiple suitors" with regard to its Saturn unit.

At last check, GM was up more than 3%, trading shy of the $2 level. The battered Dow component has shed a hefty 92% of its value during the past 52 weeks. The stock has recently enjoyed modest technical support in the $1.60 region, but short-term options traders are betting on a pullback -- peak put open interest of 233,978 contracts lies at the June 1 strike.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.