The Fiat Group of Italy confirmed on August 3 that the group is negotiating with General Motors of US over the acquisition of GM's European business, aiming to build an automotive giant in Europe which would include Fiat, Chrysler and GM's European business. In a statement, the Fiat Group announced that it would evaluate the feasibility of merging the group's auto department (including the equity held in Chrysler) with GM's European business within the next few weeks, and might spin off the newly merged company from the Fiat Group and push for its IPO. It is expected that the new company would reach an annual revenue of 80 billion Euros (approximately 105 billion US dollars) and sell 6 million to 7 million vehicles annually.