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Opel sees progress on all negotiating fronts

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2009-09-02_(c) Rolf Anders FRANKFURT (Dow Jones) – The negotiations on the various fronts over the future of the ailing car manufacturer Opel obviously progressing. (Photo: Anders)

Both of the talks on the reorganization workers’ contributions as well as the application for state aid from Germany, there is progress, as the CEO Nick Reilly said Friday at the annual meeting of the American Chamber of Commerce in Germany (AmCham).
was in negotiations with the German Opelanern on its restructuring review soon to expect an agreement, "said the manager. Opel requires that employees contribute each year to EUR 265 million for the rehabilitation of the loss company. So far, there are outstanding issues, including the workers want in return for their contributions collateral.
The capital required by the works council, there will not after the performances, however, Reilly. General Motors has not decided to keep Opel, but now to give some of the daughter from his hand, he reasoned. A profit sharing Opelaner was against an option.
Also from the employees’ side were last certified progress: In a letter from the works council chairman Klaus Franz to the employees of this week it was said that the management was "constructively respond to the demands of the Works."
A response to the request for state aid from Germany Reilly expected by month’s end. Opel does not require special treatment, but many other companies in the automotive industry had received public aid, in order to cope with the economic crisis, explained the Opel boss. In Spain and Poland, there was strong positive signals to the last request for help.
A spokeswoman for the Federal Economics Ministry in Berlin said the security committee would meet next week in terms of Opel. Should this say for the support that would still the Steering Committee as well as the Lenkungsrat corporate finance and budget committee of parliament deal with the issue. When one end of the procedure was to be expected, could not be predicted, the spokeswoman.
To meet the short-term financial needs arising in the course of Opel restructuring, GM around EUR 1.8 billion had requested state assistance in the countries of Europe with Opel and Vauxhall sites. Approximately EUR 1.3 billion will come in the form of loan guarantees from Germany. EUR 1.9 billion to the total financing requirement of approximately EUR 3.7 billion will help the U.S. parent General Motors (GM) itself. 300 million in state aid from the UK, Opel has already secure.
The outlook for the current year, however, is brightened somewhat. In this year with 1.25 million sold Opel and Vauxhall to be expected, "said Opel Chief Reilly. That would be a slight increase, as 2009 had approximately 1.2 million Opel cars brought to the customers. At the auto show in Detroit, the manager of a paragraph of up to minus 5% still had not ruled out. "The market has become a bit better than we had expected," Reilly said Friday.
Could provide the impetus RÜSSELSHEIM future a stronger presence in markets outside Europe. will present checks whether the commitment in countries such as China, Australia and South America should be strengthened, said Reilly. The decision in one or two countries could still fall this year.
The manager confirmed that will be incurred this year due to the expensive redevelopment in Rüsselsheim or losses. 2011 was the GM Europe subsidiary then approaching close to the break and the following year to return to profitability, so Reilly.
Even in the formation of a banking consortium that could provide a government-guaranteed loan, Opel has made manifest. The talks with the banks were well advanced, "said the manager. Details call he would not. A person close to the negotiations told Dow Jones Newswires, was still open the question of distribution of residual risk. "A 90-percent coverage in the case of Opel is not deemed sufficient," said the informant.

Website: www.opel.de
-By Nico Schmidt, Dow Jones Newswires; + 49 (0) 69 29 725 114
nico.schmidt @ dowjones.com
(Andrea Thomas and Eyk Henning contributed to this article.)
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