Germany could take a holding in the auto maker Opel if its parent company, General Motors (GM), declares bankruptcy, a press report said on Tuesday. The idea, which was considered a last resort, was floated during talks between the federal government and German states that are home to Opel sites, the Financial Times Deutschland reported without identifying its sources.
No firm decisions have been taken, the newspaper said. To date, Berlin has only evoked the idea of providing public loan guarantees to Opel to help it obtain crucial financing. The car maker employs around 26,000 workers in Germany, where it has four factories.
Regional premiers from the four states concerned met last week with Opel representatives in Berlin along with new German Economy Minister Karl-Theodor zu Guttenberg. GM, the largest US automaker, has drawn up several restructuring plans this year ahead of a presentation of its planned strategy to the US Congress, to which it has appealed for financial aid.
On Monday, the trade magazine Automotive News Europe said GM might close at least three European plants to compensate for a sharp drop in sales, news that GM's European spokeswoman termed "speculation." The three sites include one in Anvers, Belgium, another in Ellesmere Port, Britain, and at least one German factory, the magazine quoted sources close to the matter as saying.
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