Saturday, May 9, 2009

Fears over Opel plant 'very big'


The head of the German state that is home to Opel's threatened engine and parts plant has said that his fears for its future are now "very, very big".

The comments of Kurt Beck, the state premier of Rhineland-Palatinate, came following a meeting with Fiat chief executive Sergio Marchionne.

Mr Machinonne met regional German leaders as he continues plans to buy Opel from its US owner General Motors.

Fiat has already said the engine plant in Kaiserslautern is likely to shut.

This is because Fiat already makes many of the same engines at its own facility in southern Italy.

'Growing fears'

Following the meeting with Mr Marchionne, Mr Beck said that "the question marks concerning the interests of Opel and its German production plants - above all Kaiserslautern - have grown rather than diminished". The Kaiserslautern facility employs about 3,400 people.

Fiat wishes to buy General Motor's European business, which is called GM Europe.

GM Europe makes Opel cars, which are called Vauxhall in the UK.

It also includes Sweden-based Saab, but reports suggest Fiat is not interested in buying that business.

Germany's Economy Minister Karl-Theodor zu Guttenberg said on Friday that he hoped Canadian car parts firm Magna would continue with its rival interest in buying GM Europe. However, analysts say Fiat still remains by far the most likely buyer.

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