Opel talks stall as job row looms
GENERAL Motors was last night locked in talks with German chancellor Angela Merkel, US government representatives and potential bidders for GM’s European Opel unit, in an effort to rescue the division, even as a row over likely job losses was brewing.
The talks in Merkel’s Berlin office were focused on identifying the best bidder of four vying for the unit.
Italian carmaker Fiat, Canadian auto parts maker Magna, private equity house RHJ International and Chinese car producer Beijing Automotive Industry Corporation are all in the running to take over Opel.
The German government has pledged billions of euros in support to the successful bidder, largely because 25,000 of Opel’s 50,000 European staff are based in Germany.
But Britain’s largest union, Unite, last night expressed dismay that talks should be directed by parties likely to put German jobs ahead of British ones. Vauxhall, Opel’s British arm, employs some 5,500 people.
Business secretary Lord Mandelson said the government will listen to requests for financial support from Vauxhall while negotiations in Europe continue.