Reports: GM Developing Plan to Keep Opel
|Topics: General Motors, Opel
August 25, 2009
U.S. news reports say General Motors is developing a plan to retain ownership of its European unit Opel - while European workers complain about the slow pace of GM's decision.
The news reports Monday quoted unnamed GM officials as saying the company's board may decide to raise enough money to avoid selling Opel.
Also Monday, labor leaders at Opel threatened to protest if GM does not soon make a decision about the unit's future.
The U.S. automaker was expected to make a decision last Friday, but that was delayed.
GM declared bankruptcy in June and has survived only with the help of U.S. taxpayer loans. The company was in discussions to sell Opel to a group led by the Canadian firm Magna International Inc. and a Russian state-controlled Sberbank.
About half of GM's 50,000-strong European workforce is in Germany, and Berlin is hoping GM will accept the Magna offer to buy Opel.
German Foreign Minister Frank-Walter Steinmeier discussed the issue with U.S. Secretary of State Hillary Clinton recently.
The White House says all decisions about GM will be made by the auto company. Some information for this report was provided by AFP and Bloomberg.
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