* Fiat does not need other allies to reach sales target

* Sees renewal of govt incentives as vital

* Fiat has no interest in Opel

Italy's Fiat (FIA.MI) can reach its target of selling between 5.5 and 6 million vehicles with Chrysler alone but the group still considers renewal of Italy's car sale incentives as vital.

If the Italian government did not renew car incentives in 2010 it would have a disastrous impact, Fiat Chief Executive Sergio Marchionne told reporters at the Frankfurt motor show.

Marchionne indicated that Fiat did not need to seek alternative alliances after Canada's Magna (MGa.TO) and Russian partner Sberbank (SBER03.MM) finally struck a deal last week to buy a majority stake in Opel, a company Fiat had initially shown interest in.

I've closed completely with Opel, Marchionne said.

At present, Fiat and Chrysler have total sales of up to 4.2 million units -- short of the minimum of 5.5 million units the CEO has always targeted for survival.

Marchionne also confirmed Fiat's 2009 third-quarter targets.

At 1018 GMT the shares were up 1.93 percent at 8.98 euros. The DJ Stoxx auto index .SXAP was 2.29 percent firmer. (Reporting by Stefano Rebaudo; Editing by Jon Loades-Carter)

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