Union delegates sitting on Opel's supervisory board Thursday publicly discussed the possibility of Italian car maker Fiat SpA (F.MI) taking a controlling stake in the German car maker. Fiat Thursday said it had "nothing to announce" regarding Opel.
The union threatened industrial action as it fears that a partnership with Fiat would bring significant job cuts for Opel's 26,000 strong workforce in Germany, because it considers Fiat to be in bad shape.
"Even the strongest child can't bear two sick parents," said Opel supervisory board member Armin Schild, who is also the head of the union's Frankfurt section. GM is considering holding on to a stake in Opel. But Schild said that together, GM and Fiat would put Opel's future on the line again, after sales have recovered recently, "because Fiat is sitting on dramatic overcapacity."
Opel ran into liquidity troubles after GM struggled to live up to payment obligations and issued promissory notes as payment obligations to its subsidiary. Germany's government said it could step in with possible state guarantees after it became clear that GM's European operations needed around EUR3.3 billion in guarantees to survive. But Chancellor Angela Merkel tied any possible state help for Opel to finding a new investor for the company.
Analysts pointed to Fiat's liquidity position, which suggests that Fiat would be unable to stem a possible investment without government guarantees.
"Fiat's liquidity is relatively tight with EUR5.1 billion in cash and marketable securities but EUR6.0 billion in cash maturities in the next 12 months...and no available committed lines," said Automotive Credit Analyst Sven Kreitmair at UniCredit in Munich.
IG Metall Thursday fiercely attacked Roland Berger, who represents the government in the effort to save Opel, and also sits on Fiat's board of directors.
The union said the federal Economics Ministry, headed by Karl-Theodor zu Guttenberg, had forced Opel to accept Berger, despite questionable loyalties.
"This is outrageous in the light of the current development," said Schild, as it appeared that Berger had brokered the deal to the advantage of Fiat.
Berger couldn't be immediately be reached for comment and the ministry only provided a rather scant one, not directly touching on Fiat's potential interest.
"The federal government is in talks with various interested parties without prejudice," Minister Guttenberg said, according to a statement received by e-mail. "The talks center around a sound perspective for workers and the company."
Opel, which is also offering a range of smaller and medium-sized fuel-efficient cars, was among the strongest beneficiaries of Germany's fiscal stimulus packages, which entailed a EUR2,500 scrapping incentive for old cars.
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