GM still wants state aid for Opel restructuring

The topic is politically sensitive since GM this month reversed a decision to sell a majority stake in Opel to a consortium led by Canada's Magna , a deal backed by Chancellor Angela Merkel's German government.

Separately, Merkel told the Frankfurter Allgemeine Zeitung newspaper she expected GM to remember the role Germany played in saving Opel from insolvency in June when Detroit decides which Opel jobs to cut in Europe.

Half of Opel's 50,000 staff work in Germany.

"The restructuring of Opel for long-term sustainability requires involvement and financial support from all stakeholders, including employees and governments," GM Europe said on Friday.

"We remain in discussions with governments to engage our plan in the same way they were willing to do with the Magna proposals to provide the best possible footing for Opel/Vauxhall success."

Britain, Spain, Belgium and Poland also host Opel plants.

JOB CUTS

Magna's plans foresaw cutting 4,000 Opel jobs in Germany. Unions in Germany fear far more could be at risk now because GM Europe production boss Eric Stevens had originally seen a need to shut German Opel plants in Bochum and Eisenach.

German Economy Minister Rainer Bruederle said on Thursday that GM did not need state aid for Opel because the company can shoulder the cost of restructuring by itself, citing comments attributed to GM Chairman Ed Whitacre.