UPDATE: German Min: Time Pressing But Enough To Mull Opel Aid
10 März 2009 - 2:59PM
Dow Jones News
Time is pressing but there is sufficient to examine options for
possible help to General Motors Corp.'s (GM) German Opel unit,
German Economic Minister Karl-Theodor zu Guttenberg said Tuesday,
adding he will talk with the U.S. government about possible options
during his visit.
"We don't have an awful lot of time, but we have sufficient to
conduct this examination," said zu Guttenberg after a meeting with
his fellow economics ministers from Germany's 16 states. "I will of
course talk with my American colleague at the (U.S.) Treasury about
possible models."
Zu Guttenberg is due to travel to the U.S. on Sunday and meet
with U.S. Treasury Secretary Timothy Geithner and GM officials.
GM Europe Chief Executive Carl-Peter Forster last week presented
the company's restructuring plan for Opel to the German government
and said GM needs EUR3.3 billion ($4.17 billion) in aid across its
European operations.
The German government has called the plan inadequate.
GM posted a 2008 global loss of $30.9 billion. The government is
looking at different ideas being mooted and we are already engaged
in the search for investors in our role as a supportive player, zu
Guttenberg said.
He added that the government is active in searching for ways to
help Opel but nothing can be decided before fundamental outstanding
issues about Opel's future have been answered.
He said he will have a substantial package of questions with him
for his trip to the U.S., such as to how to safeguard jobs, whether
the restructuring plan will be a viable in the long-term and
whether it can be certain that any possible money that the German
government might give to Opel doesn't end up in Detroit.
Asked whether he regards Opel as "system relevant" to Germany's
economy, zu Guttenberg said he sees the term adequately used when
talking about the financial sector but not Opel.
He also said that considerations about amending German
insolvency law isn't targeted at Opel and family owned Schaeffler
Group, which is in trouble to fund the takeover of Continental AG.
Instead, his ministry is working on a "restructuring model" for the
financial sector.
"I will soon, in the next days consult the justice ministry
about a first draft," zu Guttenberg said.
Web sites: www.bundesregierung.de; www.gm.co
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 - 2888 410;
andrea.thomas@dowjones.com