GM Executives To Discuss Co's European Car Woes With EU, Mins
14 March 2009 - 2:31AM
Dow Jones News
Top executives from General Motors Corp. (GM) will meet later
Friday with economic and industry ministers from European Union
countries to share information and discuss possible solutions to
avoid a meltdown of the car giant's European activities.
"The situation of General Motors in Europe merits special
attention," the European Commission said Friday in a statement.
GM's Chief Operating Officer Fritz Henderson, and GM Europe Chief
Executive Carl Peter Forster will be at the Brussels meeting, which
Industry and Enterprise Commissioner Guenter Verheugen will
host.
Verheugen has complained that GM wasn't releasing complete
information on its plans for the European businesses, and has
decided to call Friday's meeting to share information. No decisions
are expected to be taken at this stage.
Ministers from Germany, Austria, Belgium, the Czech Republic,
Hungary, Luxembourg, Portugal, Romania, Sweden, the Netherlands and
the U.K. will participate at the meeting, the commission said.
General Motors' European division includes Opel, Vauxhall and
Saab. Any downsizing would mean thousands of job cuts. Opel and
Vauxhall need a total of EUR3.3 billion in aid, while Saab needs
EUR500 million from the Swedish government to survive, top company
executives have said. Saab recently sought to reorganize under
court protection in Sweden, a process similar to Chapter 11
bankruptcy protection in the U.S.
In the U.S., GM has received $13.4 billion in aid and is seeking
up to $16.6 billion more. European carmakers are asking for a total
of EUR40 billion in aid, to overcome the current slump in car sales
and the increased difficulties to obtain financing. GM posted a
total loss of $30.9 billion for 2008.
Opel and Saab might push for around 7,600 job cuts as part of a
restructuring plan to receive state aid and stave off insolvency, a
person familiar with the situation has told Dow Jones
Newswires.
The German government is looking at different ideas being mooted
and is already engaged in the search for investors in its role as a
supportive player, Economics Minister Karl-Theodor zu Guttenberg
has said. The government is active in searching for ways to help
Opel but nothing can be decided before fundamental outstanding
issues about Opel's future have been answered, he has said.
Competition Commissioner Neelie Kroes and Employment
Commissioner Vladimir Spidla will also be at the meeting.
-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88;
alessandro.torello@dowjones.com
(Andrea Thomas and Christoph Rauwald in Germany contributed to
this report)