2nd UPDATE: German Min: GM's Opel Aid Decision To Take Weeks
06 März 2009 - 1:53PM
Dow Jones News
A decision on 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.
Zu Guttenberg said there are still a number of outstanding
questions which have to be answered and both sides agree "we are
talking about a process that will take weeks."
GM Europe Chief Executive Carl-Peter 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. GM posted
a total 2008 loss of $30.9 billion.
German politicians are under pressure from labor unions to bail
out Opel, GM's largest European brand, to help save the company's
25,000 jobs - a number which more than doubles when including parts
suppliers and other Opel-linked companies.
"It was an open, good constructive talk," zu Guttenberg 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 CEO Forster, who attended the meeting, told reporters
talks were constructive and there won't be a decision in coming
days.
"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. "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.
He said the government would examine the plausibility of all
proposals.
A German government official told Dow Jones Newswires earlier
Friday that GM doesn't own the patents of Opel any more because it
has sold the rights to the U.S. Treasury in the hope of buying them
back at a later stage.
Government spokesman Ulrich Wilhelm told reporters that he
couldn't comment on the patents issue.
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."
German Interior Minister Wolfgang Schaeuble said Opel unit
should seriously think about the possibility of filing for
insolvency as such a move could help the company protect its
business assets.
Web sites: www.bmwi.de; www.gm.co
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 - 2888 410;
andrea.thomas@dowjones.com