No solution on Opel at key Berlin meeting
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The Associated Press
Oluşturulma Tarihi: Mayıs 29, 2009 00:00
BERLIN - All-night talks hosted by German Chancellor Angela Merkel on the future of General Motors Opel unit ended without decisions as new details emerged of its financial needs, the German economy minister said Thursday.
German officials had hoped to set up an arrangement under which the government could provide bridging financing for Opel while talks continue with potential investors.
However, Economy Minister Karl-Theodor zu Guttenberg said they did not succeed in doing that. During what he described as a "remarkable night," officials said GM reported extra financing needs totaling 300 million euros ($418 million) in short-term cash for Opel.
Roland Koch, governor of Hesse state which hosts Opel's headquarters, was strongly critical of the way the meeting played out, saying that GM had suddenly produced new numbers while U.S. officials offered no security guarantees.
"What the Americans are doing here is not acceptable," he told Hessischer Rundfunk radio. "They are ignoring the situation in Europe and attempting to push their agenda." But Rainer Einenkel, an Opel union leader, said he saw reason for optimism.
"It is a good signal that the sides are speaking with each other," he told ARD television. "It will definitely come to a good conclusion. We know what strength this work force has, that we build good cars, and that all are prepared to pitch in to find a solution."
There also was no decision on who might take over Opel from GM, which appeared likely to file for bankruptcy protection after bondholders balked at its plan to swap bond debt for company stock on Wednesday.
Steinbrueck said that two investors - Italy's Fiat Group and Canadian auto parts maker Magna International, which submitted a bid along with Russian lender Sberbank - remain in the running. U.S. financial investor Ripplewood Holdings has bowed out.
The government, however, needs further information from GM and the U.S. Treasury Department before decisions can be made, Guttenberg said. That information is expected by Friday, he added.
However, Economy Minister Karl-Theodor zu Guttenberg said they did not succeed in doing that. During what he described as a "remarkable night," officials said GM reported extra financing needs totaling 300 million euros ($418 million) in short-term cash for Opel.
Roland Koch, governor of Hesse state which hosts Opel's headquarters, was strongly critical of the way the meeting played out, saying that GM had suddenly produced new numbers while U.S. officials offered no security guarantees.
"What the Americans are doing here is not acceptable," he told Hessischer Rundfunk radio. "They are ignoring the situation in Europe and attempting to push their agenda." But Rainer Einenkel, an Opel union leader, said he saw reason for optimism.
"It is a good signal that the sides are speaking with each other," he told ARD television. "It will definitely come to a good conclusion. We know what strength this work force has, that we build good cars, and that all are prepared to pitch in to find a solution."
There also was no decision on who might take over Opel from GM, which appeared likely to file for bankruptcy protection after bondholders balked at its plan to swap bond debt for company stock on Wednesday.
Steinbrueck said that two investors - Italy's Fiat Group and Canadian auto parts maker Magna International, which submitted a bid along with Russian lender Sberbank - remain in the running. U.S. financial investor Ripplewood Holdings has bowed out.
The government, however, needs further information from GM and the U.S. Treasury Department before decisions can be made, Guttenberg said. That information is expected by Friday, he added.