Fiat SpA is searching for an Asian partner, following the formation of an alliance between General Motors Co. and PSA Peugeot Citroën, Bloomberg reported Wednesday.

The GM and Peugeot alliance has shrank the number of possible European candidates for partnership with Fiat, and the Italian automaker has been struggling recently with it share price dropping 31 percent in the last year.  In response, Fiat CEO Sergio Marchionne said the company would seek a second partner, specifically Suzuki Motor Corp. or Mazda Motor Corp.

Marchionne denied Fiat would take part in competitor Peugeot's capital increase, Reuters said.

Marchionne has also ruled out Renault as a possible partner, reported Dow Jones Newswire.

The European automotive market is clogged with overcapacity, which has contributed to Fiat's European sales suffering.  Fiat lost about €500 million ($655 million) in Europe last year, and relied heavily on its subsidiary, Chrysler, last year to buoy it up.

The European automotive industry association met Wednesday in Geneva to plan increased lobbying efforts to allow the closure of European car factories. Marchionne participated in the meeting and will meet with the EU trade commissioner later this month.