German Gov't Says Opel (GM) Bailout Decision Won't Depend on U.S. Moves

BERLIN, Nov 21, 2008; Gernot Heller and Volker Warketin writing for Reuters reported that Germany said on Friday it did not want to make a decision on aid for cash-strapped Opel dependent on developments in the United States, where automakers failed to secure a quick bailout.

Opel's parent General Motors Corp and U.S. peers Ford Motor and Chrysler LLC are suffering from mounting losses as Americans cut back on buying cars, but the carmakers saw their hopes for an immediate bailout dashed this week.

In the United States on Thursday, Democratic leaders demanded the automakers submit a detailed business survival plan to Congress in exchange for their support of up to $25 billion in loans.

In Germany, Opel has said it was seeking about 1 billion euros in government aid because its financial situation was threatened by the troubles of its parent.

"We can't say yet whether (the granting of guarantees) will be necessary," government spokesman Thomas Steg said, adding officials were still assessing any potential help to Opel.

Steg said once a concrete request was made, the government would be able to decide. "We will not make the decision dependent on other countries," he added.

Chancellor Angela Merkel has said the German government would aim for a decision on any Opel support by Christmas.

Merkel has said Opel was a special case, but calls have been rising in Europe for a broader plan to help the sector.

Europe's competition chief Neelie Kroes warned Germany and France on Friday against starting a race with the United States to subsidise the car industry.

Editing for Reuters by Sharon Lindores

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