EU, GM to meet on Opel's future

• Source: Global Times
• [08:21 November 18 2009]
• Comments

European Union Industry Commissioner Guenter Verheugen will meet Monday with EU economy ministers and representatives from General Motors to discuss the future of GM unit Opel, a German newspaper reported.

"The (EU executive) commission is strictly opposed to a race for subsidies" to finance the restructuring of GM's European unit, which employs around 50,000 people in several European countries, including Germany, Britain, Spain and Poland, he told the Rheinische Post in an interview appearing in its edition yesterday.

"We need a European solution based strictly on economic criteria," he said.

The newly named head of GM Europe Nick Reilly is expected to attend the session.

GM jolted the European auto sector earlier this month when it scrapped a decision to sell German-based Opel and said it would hold on to and restructure the unit itself.

Germany had backed the planned sale to Canadian firm Magna and Russian Sberbank, offering billions of euros in aid to support the transaction.

The German government could now decide to assist Opel through a fund created to help companies hit by the global economic crisis.

Verheugen said such an approach was possible but would have to adhere to "strict conditions."

AFP