Decisions made?
September 10, 2009
The long-anticipated decision on the fate of German carmaker Opel could come Thursday afternoon. Opel's American parent company General Motors has sent its chief negotiator, John Smith, to Berlin to meet with German officials and deliver a press conference based on the latest developments with Opel.
The announcement to send Smith to Berlin comes after two days of meetings between GM executives. Late Wednesday, sources close to the negotiations in Detroit have said that a decision on Opel has been made, but there were no indications of what that decision might be.
German jobs at stake
GM's plans for its European subsidiary Opel have had government officials, labor unions, and Opel employees anxiously waiting on a decision for months. In Germany, Opel employs around 25,000 people.
Opel has been struggling to stay afloat while GM continues to restructure after declaring bankruptcy in July. It has been unclear how Opel will fit into the future of GM, and the German government has propped up Opel with a 1.5 billion euro ($2.2 billion) until a final decision is made.
Germany favors a plan to sell Opel to Canadian auto parts maker Magna and Russian investment partner Sberbank. In the past, GM has reportedly favored a deal that would sell Opel to RHJ International, a Brussels-based investment firm, although recent reports suggest GM may be considering a bid to keep Opel. German Finance Minister Peer Steinbrueck has said that a GM decision to keep Opel would be conditional on payback of the German government's state loan.
Depending on decision, protests planned
Klaus Franz is the head of Opel's workers' council, and announced Thursday morning on German television that should GM's announcement not include the sale of Opel to Magna, protests against the decision would likely follow. He sees a deal with Magna as the easiest and most beneficial option.
"If reason and industrial logic carry the day, then Magna should win," Franz said in an interview with television station ZDF.
mz/Reuters/AP/AFP
Editor: Trinity Hartman