UPDATE: German Econ Min To Decide On GM's Opel Plan From Monday
27 Februar 2009 - 6:59PM
Dow Jones News
Germany's Economy Minister Karl-Theodor zu Guttenberg said
Friday the government will decide on the "viability" of General
Motors Corp.'s (GM) restructuring plan for German unit Opel from
Monday.
"It is pleasant that a plan is now on the table," zu Guttenberg
said in a statement. "We will decide about the viability of it from
Monday."
His comments come after German unit Opel plans to increase its
independence from General Motors Corp. while not completely cutting
ties with the GM Europe network, according to GM Europe Chief
Executive Carl-Peter Forster. GM has signaled its willingness to
sell a stake in the company, according to Klaus Franz, the head of
Opel's workers' council.
Forster told reporters at the Opel brand's headquarters in
Ruesselsheim near Frankfurt that Opel needs EUR3.3 billion in
capital. GM posted a total loss of $30.9 billion in 2008. The
minister is due to talk with the governors of states where Opel
plants are located on Saturday.
German Chancellor Angela Merkel said Thursday that possible
liquidity guarantees would be the right tool to help companies like
Opel.
Merkel referred to the German government's recent decision to
set up a EUR100 billion fund to provide liquidity guarantees and
loans to help struggling companies. Transport Minister Wolfgang
Tiefensee said earlier this week that Opel should be nationalized
to help save 25,000 Opel jobs, a number that more than doubles when
including parts suppliers and other Opel-linked companies.
The states with Opel plants - Thuringia, North-Rhine Westphalia,
Rhineland Palatinate and Hesse - could at least temporarily take
over the car maker, he said.
State governments so far have been cool towards an outright
takeover of the auto maker, suggesting only possibly offering
credit guarantees to keep production going.
Meanwhile, Opel dealers around the country said they would be
willing to invest in the company.
GM plans to drop 47,000 jobs worldwide by the end of the year,
including 26,000 workers outside the U.S., as part of its
restructuring plan.
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 - 2888 410;
andrea.thomas@dowjones.com