UPDATE: GM Europe Willing To Sell Stake Or Form Alliance
February 18 2009 - 7:18AM
Dow Jones News
General Motors Corp.'s (GM) European division Wednesday signaled
it is open to selling a stake or a forming a strategic alliance
with a partner.
"If it makes sense for the sustainable success of GM Europe and
Opel, management is also willing to negotiate partnerships and
shareholdings by third parties," said the company and labor
representatives in a joint statement.
They added that the company will immediately enter talks with
labor representatives over a restructuring program aimed at shaping
a sustainable financial basis for the operations.
The two sides said they will examine possibilities to see how
compulsory layoffs and plant closures can be avoided.
A labor deal rules out forced layoffs at the company's German
Opel brand until the end of 2010. Many other European locations
have similar deals in place.
The comments come after GM Tuesday said it is counting on $6
billion in financial support from foreign governments and could
potentially need billions more from the U.S. government in coming
years to cover pension obligations, even if it gets the additional
aid it requests.
GM is targeting $1.2 billion in savings from its European
operations. The company said 26,000 of the planned 47,000 job cuts
would come from outside the U.S., and warned of the possible
closure or spinoff of European plants in "high-cost locations."
Media reports have suggested the company could close as many as
four of its nine European manufacturing facilities, triggering
calls from union leaders for its Opel and Vauxhall brands to be
spun off or sold.
The German government Tuesday called on GM to offer a clear
concept for the future of its business in Europe.
Following a meeting with GM Europe and Opel last November,
German Chancellor Angela Merkel said the government would conduct a
"constructive" examination of a possible state liquidity guarantee
for Opel, and that this would depend on any finance being put to
use in Germany.
German Finance Minister Peer Steinbrueck Wednesday told
reporters that he is a "skeptic" when it comes to the possibility
of acquiring a stake in Opel.
He declined to say whether liquidity guarantees would be an
option for the government.
Company Web site: www.gm.com
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com
(Andrea Thomas and Doug Cameron contributed to this
article.)