UPDATE:Spain's Indus Min Says No Basis Yet To Provide Opel Aid
10 October 2009 - 1:01AM
Dow Jones News
There is currently no basis yet for talks about Spain's
contribution of financial aid for Austrian-Canadian car-parts maker
Magna International Inc. (MGA) in its move to take over carmaker
Adam Opel GmbH because the industrial plan has priority and it
isn't yet viable, Spanish Industry Minister Miguel Sebastian said
Friday.
"The industrial dimension is prior to any discussion about
financial support," Sebastian told reporters.
He said, "we are not at this stage yet" to talk about European
governments' aid to a European Opel company.
But he said Spain is in principle willing to provide aid if
conditions for all European Opel countries are the same. So far,
however, Magna has failed to convince Spain about its project for
Opel's Spanish plant, and there has been a "communication problem,"
Sebastian said.
He also said that Magna must provide a long-term goal for the
Spanish plant in Figueruelas, near Saragossa. He said Spain would
be willing for short-term sacrifices if the long-term goal is
convincing.
Magna will meet with officials from the Spanish government, the
regional government of Aragon and union representatives in Madrid
on Tuesday, he said.
His comments come after Sebastian met with Magna's Co-Chief
Executive Siegfried Wolf in Berlin earlier Friday. Spain, like the
U.K., is concerned that the current plan could favor German jobs
and plants at the expense of their workers and have threatened to
give no aid.
Some European countries in which Opel factories are located were
meeting Friday in Berlin with German government officials to
discuss their potential aid contributions to Magna in its bid to
take over Opel, a unit of General Motors Co.
Germany's federal and state governments have promised a total of
EUR4.5 billion in loans and guarantees, but want to gradually
reduce that contribution with support from other European countries
where the carmaker has operations. Opel has plants in Spain,
Belgium and Poland. Vauxhall has plants in the U.K.
Sebastian said Spain didn't attend the meeting with government
officials "because we have very little to offer" at the present
stage.
"To have a meeting to talk on financial support when we are not
even convinced about an industrial project is...to talk about the
restaurant bill without having had the menu," he said. "But that
doesn't mean that we are not willing to provide financial support
within the European rules if needed. But the necessary prerequisite
is that we are convinced on the industrial project," he added.
Sebastian is due to meet German Economics Minister Karl-Theodor
zu Guttenberg later Friday afternoon. The Spanish minister said he
expects that talks will lead to a viable solution.
He said, "there is room for everybody. This is a European
project and everybody can fit in."
-By Andrea Thomas, Dow Jones Newswires; +49 30 2888 410;
andrea.thomas@dowjones.com