GM, Germany spar over Opel sale terms

[rickaren]

GM, Germany spar over Opel sale terms

Posted Wednesday, Aug 26, 2009, 11:27 am in Employee News

General Motors Co. and the German government continued to spar over the sale of the automaker’s European car business today, days after GM rejected a deal backed by the government to sell Opel to an investor group led by Magna, a Canadian auto parts maker, the Associated Press reported.

GM is trying to unload the Opel and Vauxhall units as part of its effort to shed unprofitable businesses, the AP said. GM Group Vice President John Smith, in a meeting with Germany’s Opel Task Force of federal and state officials, made it clear today that GM still wants to sell the money-losing Opel, the story said.

The sides differ over financial liabilities, use of GM patents and safeguarding European jobs, the news service said. More talks with German officials are expected Wednesday, and Smith also will meet with Magna officials, the story said.

Today’s meeting came just days after GM’s management board rejected the German government’s aid package, the AP said. The board, reconstituted after GM emerged last month from bankruptcy protection, sought more information on the aid proposal, according to a German government official who spoke on condition of anonymity given the sensitivity of the talks, the story said. (Associated Press/Detroit Free Press)