German gov’t furious GM may keep Opel

Stephen Beard Aug 25, 2009
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German gov’t furious GM may keep Opel

Stephen Beard Aug 25, 2009
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Bill Radke: Anger is growing this morning in Germany against General Motors. The frustration is centering on reports the car company might decide not to sell its European division after all. From the European Desk in London, Stephen Beard has the latest.


Stephen Beard: GM agreed in principle to sell its Opel subsidiary back in May. The German government backs a sale to the Canadian car-parts maker Magna. The government promised to put up more than $5 billion to back the deal. But the talks stagnated. And now reports emerging from the U.S. suggest that GM is having second thoughts. It may try to keep Opel and raise the rescue funds itself.

The German government is reported to be furious. Auto industry analyst, Ferdinand Dudenhoeffer says most Germans support a takeover by Magna.

FERDINAND DUDENHOEFFER: Germany is prepared to fight for that solution because it’s the sustainable solution.

He says the Magna bid is likely to involve the least number of job losses at Opel. The labor unions at the company are threatening mass protests if the deal doesn’t go ahead.

In London this is Stephen Beard for Marketplace .

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