Bailout fever hits the German auto industry

[JVS]

Germany delays €1bn Opel bailout

GERMAN CHANCELLOR Angela Merkel has held off on granting a €1 billion liquidity guarantee to car manufacturer Opel.

The move comes amid concerns it could be swallowed up by its struggling US parent company, General Motors (GM).

The German firm has had to close factories temporarily in the face of plunging sales, while the difficult credit market has left the company short of operating capital and funds for product development.

After meeting leading executives from GM and Opel, Dr Merkel said the government would decide before Christmas on the case for state aid – buying time until US politicians decide the fate of GM.

http://www.irishtimes.com/newspaper/finance/2008/1118/1226961466931.html


But die tageszeitung has more information. Evidently Solar-World wants to buy Opel and start the worlds first green car company.

http://www.taz.de/1/zukunft/wirtschaft/artikel/1/solarworld-will-opel-kaufen/

Also, some desire that if Opel gets a bailout then other companies (even though they are in a fundamentally better position) deserve a bailout.

Der saarländische Ministerpräsident Peter Müller (CDU) forderte am Dienstag die Unterstützung der gesamten Autobranche. "Hilfsmaßnahmen des Staates müssen für alle Automobilproduzenten und deren Zulieferer zur Verfügung gestellt werden"
http://www.taz.de/1/zukunft/wirtschaft/artikel/1/opel-hilfen-sind-auf-dem-weg/