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| Fiat will not attend Opel talks | |
| (about 2 hours later) | |
| Fiat has decided not to attend the meeting in Berlin at which a preferred bidder for GM Europe is to be chosen. | |
| The Italian carmaker said it still wanted to buy GM Europe but the German government was being "unreasonable" in asking for extra funding from it. | |
| The German government had hoped to reach a decision on Wednesday, but had to wait for more information from the US after GM asked for extra cash. | The German government had hoped to reach a decision on Wednesday, but had to wait for more information from the US after GM asked for extra cash. |
| Also on Friday, EU industry ministers meet in Brussels to discuss GM Europe. | |
| The meeting was called after some EU nations with GM plants said Germany was having too much say over the future of GM Europe, which owns Vauxhall and Opel. | |
| But the German economy minister Karl-Theodor zu Guttenberg dismissed suggestions he was putting German jobs first, saying he had the wider interests of Europe at heart. | But the German economy minister Karl-Theodor zu Guttenberg dismissed suggestions he was putting German jobs first, saying he had the wider interests of Europe at heart. |
| GM EUROPE BIDDERS' PLANS Fiat: Italian carmaker; plans 10,000 job cuts in Europe; could close one of four Opel factories in GermanyMagna: Canadian-Austrian car parts group; Plans 2,500 job cuts in Germany; pledges to inject between 500m and 700m euros into Opel; 10% of the new company would be owned by Opel employees; GM would keep a 35% stake in the company; bid in connection with Russia's state-run Sberbank and Oleg Deripaska's truck firm Gaz The possible buyers of Opel | GM EUROPE BIDDERS' PLANS Fiat: Italian carmaker; plans 10,000 job cuts in Europe; could close one of four Opel factories in GermanyMagna: Canadian-Austrian car parts group; Plans 2,500 job cuts in Germany; pledges to inject between 500m and 700m euros into Opel; 10% of the new company would be owned by Opel employees; GM would keep a 35% stake in the company; bid in connection with Russia's state-run Sberbank and Oleg Deripaska's truck firm Gaz The possible buyers of Opel |
| Half of GM Europe's 50,000 workers are employed in Germany. The UK, home of GM's Vauxhall brand, is another big employer with 5,500. | Half of GM Europe's 50,000 workers are employed in Germany. The UK, home of GM's Vauxhall brand, is another big employer with 5,500. |
| US bail-out | US bail-out |
| Meanwhile, the GM parent company in Detroit is moving closer to bankruptcy protection backed by the US Treasury. | Meanwhile, the GM parent company in Detroit is moving closer to bankruptcy protection backed by the US Treasury. |
| The board of the carmaker is meeting on Friday to prepare to file for bankruptcy in New York on Monday, in what would be the biggest bankruptcy of a US company. | The board of the carmaker is meeting on Friday to prepare to file for bankruptcy in New York on Monday, in what would be the biggest bankruptcy of a US company. |
| Under the current plan, the US Treasury, which has already loaned General Motors (GM) nearly $20bn (£12.5bn), would get 72.5% of the new company's stock. | Under the current plan, the US Treasury, which has already loaned General Motors (GM) nearly $20bn (£12.5bn), would get 72.5% of the new company's stock. |
| In return, the US government would provide $30bn in additional financing to keep the new GM operating under bankruptcy protection. | In return, the US government would provide $30bn in additional financing to keep the new GM operating under bankruptcy protection. |
| See GM production centres in EuropeEnlarge Map | See GM production centres in EuropeEnlarge Map |
| GM bondholders, who are holding $27bn of GM debt, are now being offered the option to buy an extra 15% on top of 10% they had previously been offered. | GM bondholders, who are holding $27bn of GM debt, are now being offered the option to buy an extra 15% on top of 10% they had previously been offered. |
| If bondholders back the new offer, it will allow GM to come out of bankruptcy more quickly. | If bondholders back the new offer, it will allow GM to come out of bankruptcy more quickly. |
| GM said it had already secured the backing for the new offer from bondholders representing 20% of the bond debt. | GM said it had already secured the backing for the new offer from bondholders representing 20% of the bond debt. |
| Extra cash | Extra cash |
| On Thursday, the German government criticised the US Treasury and General Motors after being told at the last minute that that GM Europe would need another 300m euros ($415m; £260m) in short-term funding. It has already offered almost 1.4bn euros ($2bn; £1.25bn) in loan guarantees. | On Thursday, the German government criticised the US Treasury and General Motors after being told at the last minute that that GM Europe would need another 300m euros ($415m; £260m) in short-term funding. It has already offered almost 1.4bn euros ($2bn; £1.25bn) in loan guarantees. |
| If Vauxhall were to close Ellesmere Port would be a ghost town Vauxhall workers wait for news href="/1/hi/business/8072108.stm">Luton waits for Vauxhall news | |
| German officials said their focus was on two bidders: Fiat and Canadian car parts manufacturer Magna. | German officials said their focus was on two bidders: Fiat and Canadian car parts manufacturer Magna. |
| The US investor Ripplewood Holdings pulled out of the race on Wednesday night. | The US investor Ripplewood Holdings pulled out of the race on Wednesday night. |
| There was also a last-minute expression of interest from Beijing Automotive Industry Corp (BAIC), but German officials said they did not yet have enough information on BAIC's offer. | There was also a last-minute expression of interest from Beijing Automotive Industry Corp (BAIC), but German officials said they did not yet have enough information on BAIC's offer. |
| The sale of Opel is a key part of GM's plans to restructure its business. | The sale of Opel is a key part of GM's plans to restructure its business. |
| While GM will ultimately choose who buys Opel and Vauxhall, the preference of the German government is key because Berlin has pledged the most financial support for the eventual buyer. | While GM will ultimately choose who buys Opel and Vauxhall, the preference of the German government is key because Berlin has pledged the most financial support for the eventual buyer. |