UPDATE:German Min: Decision On Help For GM's Opel To Take Weeks
06 März 2009 - 1:03PM
Dow Jones News
A decision about possible German government help for General
Motors Corp.'s (GM) German Opel unit will take weeks and the
government has made no pre-committments, Economic Minister
Karl-Theodor zu Guttenberg said Friday after talks with officials
from GM and Opel.
Speaking to reporters, zu Guttenberg also said there are still a
number of outstanding questions that have to be answered and both
sides agree "that we are talking about a process that will take
weeks."
"It was an open, good constructive talk," he said. "From our
point of view, General Motors has understood that there are a
number of outstanding questions and they have signaled willingness
to answer these questions, and GM's top management is in close
contact with the U.S. government over the coming weeks."
GM Europe Chief Executive Carl-Peter Forster, who attended the
meeting, told reporters talks were constructive and there won't be
a decision in coming days.
Forster also called the talks "open and constructive."
"We are very well aware that we have to deal with a very complex
matter and many detailed questions that we will answer in Europe,
as far as they concern Europe, but in particularly also in the
U.S.," he said. "It's clear to us that this will take some time. We
will do everything possible to answer these questions to the
satisfaction of the federal government and to bring the
(restructuring) plan to a good conclusion."
Representatives at the meeting included GM's Chief Operating
Officer Frederick "Fritz" Henderson, GM Europe's Forster, Opel
Chief Executive Hans Demant, zu Guttenberg, head of the chancellery
Thomas de Maiziere and Deputy Finance Minister Joerg Asmussen.
Zu Guttenberg said that it is important to the German government
that it find answers regarding GM parent company's "possible ties
with the U.S. government." He said that this would happen during
his trip to the U.S. from March 15-18, where he will meet with GM
and the U.S. administration.
"The government will examine all proposals that are currently
there and those that will come in the coming weeks regarding their
plausibility," zu Guttenberg said.
A German government official told Dow Jones Newswires earlier
Friday that GM doesn't own the patents of Opel anymore because it
has sold the rights off to the U.S. Treasury in the hope of buying
them back at a later stage.
Opel's building and plants also belong to GM and no longer to
Opel, said the official, who declined to be named.
Government spokesman Ulrich Wilhelm told reporters that he
couldn't comment on whether GM has sold the patents to the U.S.
treasury.
Asked whether media reports saying that the chances for a
bailout of Opel have diminished, economics ministry spokesman
Steffen Moritz said "I have no knowledge of such an assessment in
our house or anywhere else."
Forster Monday presented the company's restructuring plan for
Opel to the government and said GM Europe needs EUR3.3 billion in
aid across Europe. Thousands of jobs are at risk, with reports
saying the restructuring plan foresees 7,600 job cuts instead of
the 3,500 that GM Europe has previously mentioned.
Web Sites: www.bmwi.de; www.gm.co
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 - 2888 410;
andrea.thomas@dowjones.com