Fiat bid for Opel
May 4, 2009
Ahead of the talks on Monday with Fiat's chief executive Sergio Marchionne, German Economics Minister Karl-Theodor zu Guttenberg said he was hoping for "something a little more concrete" from the meeting. However he added that there wouldn't be a final decision on the issue.
In an interview with the German paper Bild am Sonntag, zu Guttenberg said that any proposal had to ensure long-term security for Opel plants across Europe.
"We are not going to allow taxpayers be the ones to pay for a financial adventure," he said.
"For me, state involvement in Opel is not an option. At most what would be offered, would be a time limited loan."
Marchionne will also meet with the head of Opel's works' council, Klaus Franz.
According to a report in the Spiegel magazine, Franz expects that Fiat's plans include asking Berlin for financial support. He has previously described a Fiat takeover as "industrial restructuring, paid for with German taxes".
Berlin's 14-point plan for potential investors
While in Berlin, Fiat's Marchionne will also meet with German Foreign Minister Frank-Walter Steinmeier.
Information published by Spiegel this weekend has revealed Steinmeier has put together a 14-point checklist, which outlines the specific criteria Berlin expects a future investor to meet.
At the heart of the checklist are the requirements that the investor commit to ensuring all Opel plants remain in operation and that jobs are secured in Germany.
Fiat boss Sergio Marchionne on Sunday outlined his plans for a European car giant that would include GM's German unit Opel.
He told the Financial Times that Fiat, Chrysler and Opel would form a new publicly traded company with revenues of about 80 billion euros and sales of more than six million vehicles a year.
Marchionne said that combining Opel and Fiat would save one billion euros a year. The Financial Times indicated such a merger could lead to up to 9,000 job cuts.
Fiat's plans to acquire General Motors' European operations and takeover of Chrysler, would form one of the world's biggest car and truck makers.
GM Europe also includes the British company Vauxhall and the Swedish carmaker Saab.