BERLIN (Reuters) – Germany heaved a sigh of relief yesterday over a deal with Canadian auto parts group Magna, General Motors and the US government to save carmaker Opel from the imminent bankruptcy of its US parent.
The accord sealed after six hours of talks in Chancellor Angela Merkel’s offices still needs final approval but seemed set to ringfence Opel and its 50,000 workers in Europe from a GM Chapter 11 bankruptcy filing widely expected for tomorrow.
Merkel said US President Barack Obama — due to visit Germany next week — helped swing the deal with a telephone call on Friday.
That helped clear hurdles over financing that had threatened to scupper the entire transaction and allowed GM to agree the deal with Magna about the future of its European operations, of which Opel is the centrepiece.
“I spoke on the phone with the American president yesterday and we were in agreement that we had to do everything possible to come up with a good result for this complicated task,” Merkel told reporters. “That conversation clearly influenced the negotiations last night.”
Labour leader Klaus Franz said some Opel workers arriving for early shifts yesterday hugged each other in spontaneous celebrations even though some worried the proud company, which traces its roots to the 19th century, was not out of the woods.
“This was pure emotion,” Franz told Reuters Television. “I have to see now how to get the adrenaline levels down.”
Opel workers favoured Magna over rival suitor Fiat even though Magna will cut some 11,000 jobs in Europe, a quarter in Germany. Plants in Belgium and Britain may not survive.
“It’s really super,” said one beaming Opel worker as he headed into Opel’s main plant in Russelsheim at 6 a.m.
“It’s good that we’re still alive,” said one middle-aged Opel factory worker. “But we still have to see what comes out of all this, where jobs will be cut. We’ll probably end up having to pay the bill. But the main thing is: we’re still alive.”
There was no word on the fate of plants outside Germany, including two in Britain, where unions have accused the government of being much less energetic about saving jobs.
Like its parent GM, Opel has suffered acutely from world recession. Its fate has gripped Germany, where the auto industry remains a potent symbol of the country’s postwar recovery.
Merkel faces an election in September and was keen to avert large job losses.
