Merkel: Opel Guarantee Not Yet Certain

German Chancellor Angela Merkel said Monday after meeting with leaders of Adam Opel GmbH that it was "not yet determined" whether the automaker would be given 1 billion euros ($1.25 billion) in loan guarantees from the government, the Associated Press reported yesterday. Opel, a subsidiary of General Motors Corp., is seeking the guarantees because the company expects difficult credit conditions on the open market due to the world financial crisis. Merkel said that government officials planned further talks on the issue and should come to a decision by Christmas. "We were unanimous that if such a bailout did take place, the funding would have to stay in Germany with Opel GmbH." "Obviously Opel is in the most precarious situation of the German carmakers because of the state of its parent," said Tim Urquhart, another auto analyst with IHS Global Insight in London. "A lot depends on GM. They have an interlinked fate." He said Opel and GM shared development resources, component buying and general infrastructure but ruled out GM being able to sell off the unit. Read more.