Concerns over Opel
June 15, 2009
Verheugen told German newspaper Die Welt that the EU Commission would not allow the bailout of Opel to pass automatically.
He said those who benefit most from the current plan were the Russian investors. Approval by the EU commission would depend on the deal "offering assurances that Opel will survive and will be competitive for a length of time," Verheugen said.
Austro-Canadian company Magna had initiated the take-over but teamed up with Russian state bank Sberbank and car maker GAZ to ensure financing the deal. The Russian side is set to take a 35 percent stake in Opel and Verheugen warned that any key decisions would then need approval from Moscow.
Russians seeking access to technology?
He said the only ones who incured a relatively low risk by participating in General Motors Europe were the Russian investors. Verheugen raised concern that they might use Opel to gain access to modern technology to bring their domestic car production up to international standards.
Russian car companies might then in turn try to boost exports of their own models, rather than continuing their commitment to Opel.
"The fact that so far no investor in the world has come forward to continue the activities of GM Europe without public aid, shows that the risk for the business is very high," Verheugen added.
ai/Welt/AFP
Editor: Jennifer Abramsohn