Talk of GM deciding not to sell subsidiary Opel is causing rumbles in Germany, writes DEREK SCALLYin Berlin
BERLIN SUMMONED senior General Motors executives for talks in the German capital yesterday to explain reports that the US car company might not, after all, sell off its European subsidiary Opel.
The rumours have annoyed senior German politicians, who have provided a €1.5 billion loan to cover day-to-day costs at Opel. Last week, Berlin promised a €4.5 billion loan in return for a quick sale to a Austrian-Russian consortium, headed by car parts company Magna.
Rumours that General Motors (GM) was reconsidering the sale, made in the Wall Street Journal, have caused uproar at Opel factories across Germany, with unions terming as “bloody cheek” reports of a U-turn.
As Opel deputy chief executive John Smith arrived in Berlin yesterday, economics minister Karl-Theodor zu Guttenberg said the visitor from Detroit “would have to explain whether this is true or not”.
“I learned about all this from the paper like everyone else,” said zu Guttenberg.
A GM spokesperson yesterday denied the rumour that GM was considering holding onto Opel and Vauxhall with a €3 billion loan.
“It’s a bloody cheek of General Motors towards the German government and the public,” said Klaus Franz, head of Opel’s works council. “Perhaps the GM board has finally realised that, without Opel, GM isn’t worth anything.”
He has threatened “spectacular measures” – including a worker march on the US embassy in Berlin – if a sale isn’t agreed soon.
Germany’s 20,000 Opel workers have been calling for a split with GM for years.
“Under this parent company, the subsidiary has no future,” said Armin Schild, a senior official at the IG Metall union. “I see [these revelations] as a bad sign for the future of Opel.”
GM had previously annoyed German officials when, after agreeing in principle to sell Opel to Magna, they began examining other offers.
One offer, from Belgian investment company RHJ, has attracted considerable attention because of reports the company is open to selling Opel back to GM at a later date.
The latest solution would involve GM holding onto its subsidiary with the help of a €3 billion loan from other countries in Europe in which Opel operates, including the UK and Belgium.
Britain, in particular, has been perturbed by Germany’s solo run on saving Opel, and of its public backing for Magna’s bid – reportedly because it would spare German workers the brunt of expected job losses.
Although GM chief executive Fritz Henderson has reportedly thrown his weight behind Magna’s bid, the GM board is understood to be wary of selling the subsidiary to a consortium backed by the Russian state-controlled bank Sberbank.
The board, largely dominated by Obama administration appointees after GM’s bankruptcy, has called into question the wisdom of giving a Russian company access to US engineering know-how.