Fiat says has had no alliance talks with Peugeot

A Fiat logo is seen on the wheel of a Fiat car in Turin in this picture taken February 10, 2013.

MILAN (Reuters) - Fiat (FIA.MI) was not among potential investors sounded out by PSA Peugeot Citroen's (PEUP.PA) founding family, the Italian carmaker's chairman and controlling shareholder John Elkann said on Monday.

The Peugeot clan, one of Europe's three surviving car dynasties, and beleaguered chief executive Philippe Varin turned to 7 percent shareholder GM (GM.N) after inconclusively sounding out other potential investors including Chinese partner Dongfeng, sources told Reuters last week.

The family's recognition that it may need to surrender control could lead to wide consolidation in Europe's loss-making car industry and plant closures.

Asked if he had held talks with the Peugeot family, Elkann said: "No."

"As we've said before, certainly if we were presented with an interesting (partnership) opportunity, we would be open to considering it," he said.

(Reporting by Jennifer Clark; Editing by David Cowell)