UPDATE: Fiat: Opel Deal Would Have Less Than 10,000 Job Cuts

Fiat SpA (F.MI) said Friday its offer for General Motors' (GM) Adam Opel AG unit would result in less than 10,000 job cuts, meaning the reduction of workers is similar to that of its main challenger, Magna International Inc. (MGA).

The latest comments from Germany - where Opel is based - indicate Magna as the frontrunner in the race to grab the assets. German politicians are planning to continue to discuss bids for Opel at a meeting on Monday.

German Economy Minister Karl-Theodor zu Guttenberg on Friday described Magna's bid for Opel as "interesting," but added that some financial details still require clarification as the German state is expected to support the deal with taxpayer money.

Germany must make a "principle decision" next week, said zu Guttenberg at an event in Berlin.

Earlier this week, Fiat, Magna and RHJ International (RHJI.BT), a European buyout firm of investor U.S. Ripplewood with holdings in the auto-parts industry, presented their bid for Opel.

Fiat is keen to acquire GM Opel unit to merge it with its own Fiat Auto and with Chrysler LLC, in a bold move to tap government funds to finance a reduction of the auto industry's chronic overcapacity through a merger between similar mass-market brands.

Fiat's plan calls for a decrease in staff, "distributed across Europe and spread out over time, of a total number less than 10,000," Fiat said in a statement Friday. "The impact in Germany would therefore be relatively lower than this number," it said.

The Italian car maker also denied media reports its bid for Opel would result in 18,000 job cuts in Germany. "This information is totally false," the company said.

Later Friday, Fiat Chief Executive Sergio Marchionne gave a presentation at a conference in Rome saying 2009 will be toughest year ever for an auto industry that will be significantly different than in the past, according to slides of the event. Fiat also said it will play a significant role in this change.

Also Friday, the governor of North-Rhine Westphalia, Juergen Ruettgers, said he won't support Magna's bid as 2,200 of of about 10,000 job cuts would be at Opel's Bochum plan, which is located in his state. He admitted, however, that Magna's bid is "the most detailed one."

-By Jennifer Clark and Liam Moloney, Dow Jones Newswires; 39 02 58 21 9904; [e-mail]

(Andrea Thomas and Christoph Rauwald contributed)