GM's Opel Sees Sales Or JV Of Parts Units In '03

FRANKFURT -December 2, 2002;Dow Jones reported that General Motors Corp.'s German arm, Adam Opel AG , won't likely reach deals to sell or form joint ventures for some auto parts units until 2003.

The story said that the carmaker, fighting to slash costs and break even by the fourth quarter of next year, had originally hoped to reach agreements this year on the parts units in Germany and Spain.

But Opel spokeswoman Gudrun Langer Monday confirmed that negotiations are still ongoing with possible partners.

"What's very important is that we have a win-win situation," she said.

According to a report in Financial Times Deutschland, Opel rejected the price offered by auto supplier Benteler AG for one parts unit in Zaragossa, Spain. In talks on another unit, in Kaiserslautern, Germany, potential buyer ThyssenKrupp AG is squeamish about the comparatively high salaries Opel workers receive.

Opel has broken off talks with Benteler but is now negotiating with a smaller Spanish supplier, one person close to Opel confirmed.

The newspaper also said Opel has abandoned hopes of gaining EUR500 million from the parts' sales. Langer declined to comment on this sum.

Company Web site: http://www.opel.com