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German states set to rescue GM's Opel
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16 February 2009
It is unclear how this might affect workers at Vauxhall's Ellesmere Port plant in the UK where Astras are made. GM and Opel have been negotiating a separation for weeks, media reports in Germany said today.
Ruesselsheim-based Opel's future "is only secure if it's separated from GM," said Klaus Franz, head of the carmaker's works council. Thousands of workers at Opel plants are on short-time working because of a dramatic plunge in sales.
Germany's state governments have the muscle to put up the cash that such a move would involve.
The protectionist measure comes as Germany's recession bites deeper than analysts feared and gravely threatens the country's export-led economy.
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