Opel wants government aid to prevent closings.
Executives at GM’s German subsidiary, Adam Opel AG, have raised the possibility of selling part of the company to outside investors and have approached the German government for aid, the German new magazine Der Spiegel says. German Chancellor Angela Merkel, however, has asked Opel for a detailed restructuring plan, according to Der Spiegel.
Meanwhile, GM chairman Rick Wagoner said GM would be willing to sell off a piece of Opel but doubted there were any buyers. Wagoner, however, said GM was not willing to sell off its operations in China, which now sell more than 1 million vehicles annually.
GM of Europe issued a statement in conjunction with the leader of GM of Europe’s works council saying they were preparing a restructuring plan for the Opel unit.
“In view of the crisis on the European car market which impacts all car manufacturers, it is imperative to implement significant actions in order to ensure that GM’s European business is viable and sustainable,” said a statement signed by GM Europe CEO Carl-Peter Forster, Opel CEO Hans Demant and the head of GM Europe’s works council, Klaus Franz.
“Management and employee representatives are immediately starting with discussions about such a restructuring process in order to evaluate whether forced redundancies and plant closures could be avoided.
“Management is willing to consider strategic third-party partnerships, alliances and equity stakes in case such an approach is seen as beneficial for GME and Opel’s/Vauxhall’s viable and sustainable future.
“Both sides, employee representatives and GME / Opel management, are fully convinced that Opel/Vauxhall has a bright future due to its successful product portfolio – provided that the financial framework can be successfully set up. Opel/Vauxhall is GM’s core business in Europe.
GM is also discussing aid for Saab with the Swedish government. So far, however, the government has not been willing to extend help to Saab. Last night Wagoner indicated GM was prepared to halt its continuing support for the Saab. A Swedish bankruptcy filing as soon as this month could happen according to GM.
Wagoner said that GM plans to cut 47,000 jobs, including 26,000 outside the U.S., as it continues to restructure.
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