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GM's Opel seeks German government guarantees
Automotive News
November 14, 2008 - 11:00 am ET
HAMBURG, Germany (Reuters) -- General Motors' Adam Opel unit has asked the German federal and state governments for guarantees to help it weather tough times for the automotive industry, an Opel spokesman said today.
Opel Managing Director Hans Demant said state aid would be used to invest in product development and assembly facilities in German plants and would not be used outside of Europe.
"We want to secure Opel's competitiveness even in this difficult situation around the world," he added.
"The aim of the current talks is to prepare additional backing for loans because parent company General Motors' global financial situation has deteriorated," Opel labor leader Klaus Franz added.
"We want to assure Opel's future in Europe as well as our jobs. That is why employees support this completely."
A finance ministry spokesman in Berlin said talks were scheduled for next week.
The Handelsblatt newspaper quoted government sources as saying the German state of Hesse, home to Opel's German headquarters, was considering providing 500 million euros ($634 million) in guarantees.
GM, the biggest U.S. carmaker, has warned it could run out of cash early next year if car markets did not improve or it did not get more funding.
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Opel Managing Director Hans Demant |
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