German Dep Min: No Deal Tuesday On Aid For General Motors Europe
BERLIN -(Dow Jones)- The meeting between German and European government
officials Tuesday in Berlin over state aid for the new car company to be formed
by General Motors Co.'s European units is unlikely to produce any results
because Canadian car-parts maker Magna International Inc. (MGA) has yet failed
to submit a detailed business plan for the new company, German Deputy Economic
Minister Jochen Homann said Tuesday.
The meeting, which will take place early afternoon, will discuss a possible
distribution of the state aid based on Magna' plan for Opel and Vauxhall that
has been presented weeks ago, said Homann, who is head of Germany's task force
on Opel.
A detailed business plan, however, is a precondition for a specific
distribution of possible burden and risks, Homann said.
GM last week decided to sell its Opel/Vauxhall units to Magna and Russian bank
OAO Sberbank (SBER.RS). Germany has said it will provide a total of EUR4.5
billion in aid to the new company to be formed by Opel and Vauxhall, but it also
seeks support from other European countries to eventually reduce its own
contribution. Such loans and guarantees require approval by the European
commission.
-By Beate Preuschoff and Andrea Thomas, Dow Jones Newswires; +49 (0)30-2888
410; andrea.thomas@dowjones.com, Dow Jones Newswires;
(END) Dow Jones Newswires
09-15-090407ET
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