Italian automaker Fiat SpA is on a global shopping spree. On April 30, Fiat took over management of bankrupt U.S. auto giant Chrysler llc. Now Fiat ceo Sergio Marchionne is meeting senior German and American officials with a plan to take control of General Motors operations in Europe, South Africa and Latin America. If this plan goes through, it would put power over several traditionally American-dominated markets in the hands of the European Union.

GM is on the verge of bankruptcy and running on loans from the U.S. government. Its managers are trying to consolidate operations. That is why they are thinking about allowing Fiat to take over the European brands of GM—Opel, Vauxhall and Saab—as well as GM South Africa and GM Mercosul. Under the terms being discussed, GM would receive a stake of between 10 and 30 percent in Fiat as compensation for its lost subsidiaries.

Fiat, however, needs public funding to make this colossal merger happen. That is why Marchionne is seeking up to $9 billion in loan guarantees from European governments. Most of this money would come from Germany. GM’s crown jewel in Europe, Opel, is based in Russelsheim, Germany, and employs approximately 25,000 people in that country. Marchionne has already met with senior German officials—including Hesse state Premier Roland Koch—to get their approval for his merger plans. A decision on Opel’s fate is expected by the end of this month.

Whether this particular deal goes through or not, it is extremely significant that American automotive officials are now looking to transfer key assets to European countries. Chrysler is already being managed from Italy, and parts of GM may be headed down the same road.

The Plain Truth said in May 1962, “[T]he United States is going to be left out in the cold as two gigantic trade blocs, Europe and Latin America, mesh together and begin calling the shots in world commerce. The United States is going to be literally besieged—economically—frozen out of world trade!” America losing its foreign automobile manufacturing capability is part of this trend.

For information on what the Bible says about such an economic siege, read “Superpower Under Siege” and The United States and Britain in Prophecy.