2nd UPDATE: German Econ Min: Looking For European Opel Solution
11 März 2009 - 8:14PM
Dow Jones News
Germany is still working on finding a European solution for
General Motors' (GM) German unit Adam Opel AG, and several measures
are under consideration, German Economics Minister Karl-Theodor zu
Guttenberg said Wednesday.
Speaking after bilateral talks with Swedish Trade Minister Ewa
Bjorling, zu Guttenberg said he had asked his colleague about
Sweden's experience with GM's Saab unit, which recently sought
protection from creditors. He said he was interested in the Swedish
experience, where a government had implemented a decision on Saab,
that hadn't been totally popular with it's citizen.
"I'm far from drawing an analogy," zu Guttenberg said. "I
believe that we're working on very different measures in our
country and that we're continuing to search for a European solution
in any form," zu Guttenberg said.
"The Swedish examples shows that they also had a number of
questions, which had not been answered from the parent company and
that at the same time they have tried to do everything possible to
safe jobs, regardless which kind," he said. "It also applies to us
that we continue to search for solutions." He added that "we cannot
takeover tasks that a company has to complete."
Bjorling, who is not overseeing car issues in her ministry, said
that the Swedish experience regarding the automotive industry has
been that "the good recipe has been to be clear, distinct and ready
from the beginning." She said it was important to think of the
future, how to change the industry and how to increase
environmental technology. As a result, the Swedish government
decides, for example, to support research and development and also
car industry suppliers.
"I think it is important in this cases to balance...not being to
projectionist and still take good care of industries and your
societies," she said.
Both ministers agreed that protectionism would be the wrong
response to the current crisis.
Bjorling said that her main priority during Swedish E.U.
Presidency in the second half of this year is to finalize the Doha
round of global trade talks.
Asked about the financial trouble in some European Union member
states and whether the E.U. requires additional instruments, zu
Guttenberg said that solidarity won't be given up easily but
countries must also serve their duty and do their homework to solve
their problems.
"I believe that we must think creatively on a European level
about instruments that we have at our disposal," he said, adding
that they might have to be supplemented, if needed.
Saab has sought protection from creditors, a process similar to
Chapter 11 bankruptcy protection in the U.S., as the car maker
looks to reorganize and find a way to become independent of GM.
Saab's Managing Director Jan Ake Jonsson has said Saab needs
EUR500 million in aid from the Swedish government to survive.
GM Europe Chief Executive Carl-Peter Forster last week presented
the company's restructuring plan for Opel to the government and
said GM needs EUR3.3 billion in aid across its European
operations.
GM has pledged to squeeze $1.2 billion in savings out of its
European operations. Opel has some 26,000 workers in Germany.
The European Commission has invited GM bosses and E.U. ministers
hosting GM plants and those of subcontractors for a meeting this
Friday amid talks to coordinate their response to GM's
troubles.
Web sites: www.bundesregierung.de; www.gm.com
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 - 2888 410;
andrea.thomas@dowjones.com