German Chancellor Angela Merkel has invited leaders from automaker Opel to talks to discuss the company's financial status.On Friday, the car company requested credit guarantees from the government, saying it wants the guarantees to counter a downturn in car orders.However, the unit of General Motors Corp, which itself is seeking a US government bailout, said it was facing no liquidity problems."It is important that we consult about the proper steps to take so we can try to support the automobile industry," said Merkel on the sidelines of the global financial summit in Washington.
German Chancellor Angela Merkel has invited leaders from automaker Opel to talks to discuss the company's financial status.
On Friday, the car company requested credit guarantees from the government, saying it wants the guarantees to counter a downturn in car orders.
However, the unit of General Motors Corp, which itself is seeking a US government bailout, said it was facing no liquidity problems.
"It is important that we consult about the proper steps to take so we can try to support the automobile industry," said Merkel on the sidelines of the global financial summit in Washington.
The deputy supervisory board chairman of General Motors Corp.'s (GM) Opel unit said Saturday that any financial aid from the German state must not be burned from the parent company, but has to stay within the Opel brand. "We as employees will make our contribution in this difficult time to ensure future investments. But we won't provide a single cent, which then would be burned from GM," Klaus Franz said in a statement. Franz is also the top labor representative of GM's European division. Referring to Opel's recent request for state-backed guarantees for credit lines, Franz said that "Opel has no liquidity problem. This is purely a precautionary measure". The guarantee would have to be linked to concrete plans for future investments on plants and for securing jobs. Opel is "very well positioned with its quality and models," Franz said.
The deputy supervisory board chairman of General Motors Corp.'s (GM) Opel unit said Saturday that any financial aid from the German state must not be burned from the parent company, but has to stay within the Opel brand.
"We as employees will make our contribution in this difficult time to ensure future investments. But we won't provide a single cent, which then would be burned from GM," Klaus Franz said in a statement. Franz is also the top labor representative of GM's European division.
Referring to Opel's recent request for state-backed guarantees for credit lines, Franz said that "Opel has no liquidity problem. This is purely a precautionary measure".
The guarantee would have to be linked to concrete plans for future investments on plants and for securing jobs.
Opel is "very well positioned with its quality and models," Franz said.
