Germany calls General Motors to crisis talks on future of Opel/Vauxhall

[CHIMO]

Source: guardian.co.uk

The German government is set to hold crisis talks with officials from General Motors this week as the sale of its Opel-Vauxhall arm drags on and speculation mounts that the American car giant could retain the business.

The uncertainty surrounding the future of the company today caused Klaus Franz, head of Opel's labour union in Germany, to threaten unspecified "spectacular measures" if a decision is not reached quickly. At the weekend German chancellor Angela Merkel said a resolution to the question was "urgently needed".

But today Berlin, which would prefer a sale to Canadian automotive firm Magna over a rival offer from Belgian private equity firm RJH, tried to calm frayed tempers on both sides of the Atlantic with the government saying it would this week invite a member of the GM board to the country to talk about the future of Opel.

"I can understand that the workers want to have clarity quickly about the way ahead," said a spokesman for the German chancellor. "On the other hand, the decision is complex. I think staying calm to preserve a good negotiating climate, is in the interests of all sides."



Read more: http://www.guardian.co.uk/business/2009/aug/24/vauxall-opel-general-motors-uk-germany

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Monday 24 August 2009 20.46 BST

White House will not intervene in General Motor's decision on Opel
White House Deputy Spokesman Bill Burton said that the Obama administration will not get involved in pressuring General Motors to make a decision on the future of Opel.

"The President's view is that decision made about the day-to-day operations at General Motors should be made by the folks at General Motors," said Burton.

The US government has a majority stake in GM after the company declared bankruptcy in June.

Meanwhile, Opel's labor leaders are losing patience with the German carmaker's parent company GM.

http://www.dw-world.de/dw/article/0,,4595654,00.html