India | UK | US

Germany government slams GM's Opel decision as 'unacceptable'

Berlin - The German government slammed as  unacceptable  Wednesday the surprise decision by US carmaker General Motors (GM) to back out of a deal to sell European subsidiary Opel, as workers at the firm's German plants called for immediate strikes. G...
Posted : Wed, 04 Nov 2009 09:58:24 GMT
By : dpa
Category : Business
News Alerts by Email ( click here )
Business News | Home
Berlin - The German government slammed as "unacceptable" Wednesday the surprise decision by US carmaker General Motors (GM) to back out of a deal to sell European subsidiary Opel, as workers at the firm's German plants called for immediate strikes. GM's decision, coming after months of tortuous negotiations and a seemingly done deal, came as German Chancellor Angela Merkel was actually in Washington to address Congress on the 20th anniversary of the fall of the Berlin Wall.

In Berlin, Economics Minister Rainer Bruederle called GM's behaviour "entirely unacceptable."

The cabinet of Germany's new coalition government of conservative Christian Democrats and liberal Free Democrats was due to meet later to discuss Detroit's surprise move.

The deal to "save" Opel by selling it to Canadian-Austrian firm Magna was a key issue ahead of Germany's September general election.

The GM board voted Tuesday against the planned sale of a majority stake to Magna, ending months of uncertainty and placing pressure on the German government which had backed the deal with hefty state guarantees.

Bruederle demanded that GM repay a 1.5 billion euro (2.2 billion dollar) bridging loan, pledged by Chancellor Angela Merkel's government to keep Opel's operations going ahead of a Magna takeover.

German Opel employees at the Ruesselsheim plant called for strikes to take place Thursday.

"The activities will start in Germany and spread to all of Europe," the head of the works council Klaus Franz told German Press Agency dpa.

The works council also withdrew an offer to forfeit salary and holiday pay to help Opel restructure, under a deal reached with Magna the previous day.

"General Motors' next step will be to blackmail governments and employees in Europe to finance the known, unsustainable GM concept," said an embittered Franz.

In Britain meanwhile, GM's decision was welcomed by trade unionists, who had feared that a German-backed Magna deal could lead to the closure of factories belonging to Opel's UK brand, Vauxhall.

"This is the best decision for Great Britain and our factories," said Tony Woodley, head of the trade union Unite. Vauxhall's factories in Ellesmere Port and Luton employ 5,500 people.

GM's European subsidiary also has factories in Spain, Poland, Belgium and Austria. About half of Opel's 50,000 workers are employed in Germany.

Copyright DPA

Share/Save/Bookmark

Article : Germany government slams GM's Opel decision as 'unacceptable'
Print this article
Email this article

Stay Updated
News gadget on your Google homepage
Subscribe to a news feed in Google Reader


Related News

Report: Germans in turmoil over Opel aid as neighbours offer cash
Berlin - The new German coalition government led by Chancellor Angela Merkel is in turmoil over the issue of state aid for Opel, while other EU states with Opel factories have pledged more than a billion euros (1.49 billion dollars), a magazine repor...

Thousands of Spanish farmers protest for higher prices
Madrid - Tens of thousands of farmers demonstrated in the Spanish capital of Madrid on Saturday for higher prices for their produce, claiming that farming in the country was no longer profitable. According to the state broadcaster RNE, more than 100,...

Porsche board agrees to VW tie-up - Summary
Berlin - Luxury German sports carmaker Porsche said Friday its board had agreed to the group's planned integration into Volkswagen AG, Europe's biggest auto manufacturer. The decision by the Porsche supervisory board came after German-based VW's supe...

Frankfurt Stock Exchange quotations 20 November 2009
Frankfurt - Frankfurt Stock Exchange closing prices in euros. In brackets the point movement of index/price movement of stocks against previous quotation: ...

Arab stocks lacklustre ahead of Muslim festivities
Amman - Most of Arab stock markets extended losses this week ahead of Eid al-Adha festivities due to start on November 27, financial analysts said Friday. They also attributed the plunge to declines on global markets, the foggy picture surrounding th...

Iberia cabin crew cancel strikes in Spain
Madrid - Cabin crew of the Spanish airline Iberia have cancelled eight one-day work stoppages foreseen to start on November 30 and stretch into December, trade union sources said Friday. The unions said they had reached an agreement with Iberia on pa...

Asia's airlines see signs of recovery, expect heavy losses
Singapore - Asia's airlines saw some signs of recovery after passenger demand slumped during the global recession, the head of a regional industry body said Friday, but the business environment continued to be challenging. Hopefully, we are at least...

Have your Say
Name
Email
Subject
Your Comment

Enter Verification code
 
  

 

 

More Business News click here
Follow The Earth Times
Subscribe to RSS Follow Earth Times on TwitterNews by email
Share/Save/Bookmark

 
 



 
Subscribe to free Earthtimes
News Alerts by Email Click here
For RSS Feeds Click here
or Create your own RSS

Add to Google Toolbar
Breaking News
Press Releases

 


The Earth Times
News Category

© 2009 www.earthtimes.org, The Earth Times, All Rights Reserved | Privacy Policy
Earth Times accept no responsibility or liability either directly or indirectly for views or opinions expressed in articles or comments.