- Title: GERMANY: Germany urges calm in Opel row as unions threaten action.
- Date: 25th August 2009
- Summary: RUESSELSHEIM, GERMANY (AUGUST 24, 2009) (REUTERS-ACCESS ALL) EXTERIORS OF OPEL PLANT WORKERS EXITING PLANT OPEL BUILDING WITH LOGO WORKERS EXITING REVOLVING DOORS / WORKERS LEAVING WORK (SOUNDBITE) (German) UNNAMED OPEL EMPLOYEE, SAYING: "Whatever measures we take- should we demonstrate, should we strike- do you really think that would change anything? It will hardly register with those in America, they don't care." (SOUNDBITE) (German) UNNAMED OPEL EMPLOYEE, SAYING: "We just have to wait see." (SOUNDBITE) (German) UNNAMED OPEL EMPLOYEE, SAYING: "The atmosphere is dire, many have just turned to sarcasm and everybody says just, well, we have to wait and see what happens. Perhaps it's all over by the end of the year, perhaps they will just keep fiddling about. Nobody knows." EXTERIOR OPEL PLANT FRANKFURT, GERMANY (AUGUST 24, 2009) (REUTERS-ACCESS ALL) EXTERIOR OF CONSULTANCY IHS GLOBAL INSIGHT IHS LOGO INTERIOR ARRIVAL AUTOMOTIVE EXPERT AT IHS GLOBAL INSIGHT CHRISTOPH STUERMER (SOUNDBITE) (German) AUTOMOTIVE EXPERT AT IHS GLOBAL INSIGHT CHRISTOPH STUERMER, SAYING: "The company GM is culturally laid out for bigness- to be the biggest company in the United States, the biggest carmaker in the world, it is important to them. The 1.5 million units of Opel are an important part of that. That means that if one thinks from the inside of GM as a company, it would be illogical to get rid of such an important part without the need to. It is even more illogical to then build up this part as competition." STUERMER'S HANDS (SOUNDBITE) (German) AUTOMOTIVE EXPERT AT IHS GLOBAL INSIGHT CHRISTOPH STUERMER, SAYING: "The German government had the chance to take Opel out of the bankruptcy proceedings at GM which is exactly what they did. Now the bankruptcy proceeding is over and Opel still exists. This means that in theory, all options are open again." GLOBAL INSIGHT LOGO
- Embargoed: 9th September 2009 13:00
- Keywords:
- Location: Germany
- Country: Germany
- Topics: Industry,Domestic Politics
- Reuters ID: LVA3IOIOQASOY0V0ET0QG7Z7KJPM
- Story Text: German government urges calm after GM delays Opel decision as labour leader threatens "spectacular measures".
The German government sought to calm a growing transatlantic row over the fate of carmaker Opel on Monday (August 24) as unions threatened "spectacular measures" to force a decision by U.S. parent General Motors.
Negotiations over Opel, which GM is selling as part of a government-orchestrated restructuring, have dragged on for months, fuelling anger among its 50,000 European workers, half of which are in Germany.
"Whatever measures we take- should we demonstrate, should we strike- do you really think that would change anything? It will hardly register with those in America, they don't care" said one Opel employee in Ruesselsheim. "The atmosphere is dire, many have just turned to sarcasm and everybody says just, well, we have to wait and see what happens" he added. "Perhaps it's all over by the end of the year, perhaps they will just keep fiddling about. Nobody knows."
GM had been expected to reach a decision on Friday whether to sell Opel to Canadian automotive firm Magna, Berlin's favoured bidder, or to rival RHJ International, but failed to announce a winning bidder or make its choice clear.
"The German government had the chance to take Opel out of the bankruptcy proceedings at GM which is exactly what they did. Now the bankruptcy proceeding is over and Opel still exists," said automotive expert at IHS Global Insight consultancy, Christoph Stuermer. "This means that in theory, all options are open again."
Over the weekend German Chancellor Angela Merkel, who is under pressure to find a solution for the carmaker before a federal election next month, expressed regret about GM's delay and said a decision was "urgently needed".
And on Monday morning, Opel labour leader Klaus Franz raised the stakes by threatening unspecified "spectacular measures" if GM did not make up its mind soon.
Opel employs over 25,000 in four major plants in Germany that make models including the three-door Corsa subcompact and Zafira van. It has two factories in Britain that produce cars under the Vauxhall badge and sites in Belgium, Poland and Spain.
In the first half of the year, Opel and sister brand Vauxhall sold just over 560,000 cars in Europe, good for a market share of 7.6 percent, according to data compiled by the ACEA auto industry association.
The sale of Opel is part of a broader overhaul of GM, which emerged from bankruptcy protection on July 10.
The federal government, German states with Opel plants and the German unions have made clear they favour the Magna offer, which is backed by Russia's Sberbank because they say it would allow the carmaker to grow and develop. - Copyright Holder: REUTERS
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