Thursday, August 27, 2009

MERKEL SAYS GM STILL PLANS TO SELL OPEL

       German Chancellor Angela Merkel on Wednesday moved to dispel the uncertainty surrounding General Motors' troubled Opel arm, saying there was no evidence the giant US carmaker wanted to retain control of its European operations.
       In an interview on Germany's Channel N24, Merkel said Berlin had no evidence that GM was dropping plans to sell off a majority stake in Opel as part of a major restructuring of the Detroit, Michigan-based carmaker's global business.
       "Such a solution has never been presented to us," Merkel said.
       "We are currently negotiating with the Americans over the remanining questions surrounding the Magna concept," she said.
       Merkel's government has thrown its weight behind a bid for Opel led by the Austrian-Canadian auto-parts group Magna International.
       Her comments came in the wake of growing tensions between Berlin and GM over Opel's future ownership.
       However, the giant US carmaker has also indicated it would like Berlin to consider the merits of an alternative plan for Opel presented by Brussels-based private-equity group RHJ Internationl.
       At the same time, it is understood that an improving car market had also led GM to consider retaining control of Opel.
       About half of Opel's 50,000 strong European workforce is based in Germany.
       After the GM board delayed making a decision on Opel at its meeting last Friday, Merkel said she was now hopeful GM's board would move closer to setting the future of Opel at its gathering set for September 8-9.
       In the meantime, German government officials and top GM management representatives are expected to resume their talks on Opel today after a meeting on Tuesday broke up without agreement.
       But Merkel insisted the government was not under pressure to reach a deal of what is called the New Opel. Meeting German interests was more important than reaching a speedy decision on Opel's future, Merkel said.

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