F&I Management & Training

GM boss Rick Wagoner has said the firm is willing to take "a less than 100%" stake in its Opel offshoot, in order to get German aid to save the subsidiary. Germany's economy minister is in the US to discuss a government bail-out of European subsidiary Opel. But Berlin wants to be sure no state support would find its way back to Detroit and be used to bail out GM. "We're open to a different structure in Europe," said Wagoner. "We need more cost savings." Wagoner met with the German Economy Minister Karl-Theodor zu Guttenberg on Monday night in Washington. Guttenberg said it was essential for GM to find a private investor. Germany's economy minister was meeting the US treasury secretary on Tuesday to discuss a government bail-out of General Motors' subsidiary Opel. Karl-Theodor zu Guttenberg will discuss with Timothy Geithner GM Europe's 3.3bn euros (£3.1bn; $4.3bn) request for aid. GM has already received $13.4bn from the US government, and has requested another $16.6bn, but this money will not go to its European operations. There are concerns that without state aid, GM Europe could go bust. Detailed proposals Mr Guttenberg met GM officials on Monday night. He was seeking assurances that any monies contributed by the German government would not be used to prop up Opel's US parent. Instead, he wants to ensure that any state funding will be used to secure Opel's long term future. Any decision about a bail-out will depend on the detailed proposals for its European operations being put together by GM. Germany has already demonstrated its willingness to help its ailing car industry by introducing a 2,500 euros cash incentive for car owners who trade in old cars. The UK government is also waiting to see GM Europe's proposals before it makes any decision about contributing to a bail-out of GM's UK-based Vauxhall subsidiary. "We need to see what the plans are before making any decision," said a spokesperson for the Department of Business, Enterprise and Regulatory Reform. The proposals should be completed "in the short term" said a spokesperson for GM Europe.

DATED: 18.03.09

FEED: AW