Brussels, 16/03/2009 (Agence Europe) - The future of the European activities of the US motor car group General Motors was at the heart of debate in the crisis ministerial meting in Brussels on Friday 13 March. Taking part in the meeting were the group's US number 2 Fritz Henderson and the head of its European operations Carl Peter Foster, Commissioners Günter Verheugen (Industry), Neelie Kroes (Competition) and Vladimir Spidla (Employment and Social Affairs), and the economy and industry ministers of 12 member states directly affected by the difficulties being experienced by GM, having either car production or spare part production plants (Austria, Belgium, Czech Republic, Germany, Hungary, Luxembourg, Poland, Portugal, Romania, Spain, Sweden and United Kingdom). The aim of the informal meeting was threefold: to ensure that the member states and Commission had the same information, to hold a direct and coordinated exchange of views with GM, and to confirm that member states would not take national measures without prior information to and coordination with the other countries affected and to protect the internal market, the Commission says in a press release.
After Henderson and Foster briefed those present on the situation of GM in Europe, discussions continued in camera. Re-stating, as the Competitiveness Council of 6 March had done (see EUROPE 9855), the need for a coherent, coordinated political approach European automotive industry, based on the primary responsibility of companies in facing the crisis, ministers showed a unity of purpose against the US group, which is suspected of encouraging a bidding war between capitals to avoid the closure of the plants of its German subsidiary Opel. General Motors, which employs 55,000 people in Europe and already plans to sell off its Swedish subsidiary Saab, is seeking €3.3 billion in public aid for Opel, the plants of which at Bochum and Eisenach in Germany and Antwerp in Belgium are under greatest threat. Fearing that the Antwerp plant may be sacrificed in an arrangement between the German government and GM, Flanders has pulled out all the stops to try to avoid the worst, indicating it was ready to put up €300 million in guarantees to save the plant. Germany, with almost 26,000 jobs - half of Opel's workforce - also has to deal with a very delicate issue, with Chancellor Angela Merkel, who is wants the German constructor to be saved only if it is a viable concern, under pressure from the SPD to save the company, no matter the cost. (E.H./transl.rt)