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Germans angry over GM decision to keep Opel

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  • Opel labour representatives called for work stoppages across Europe to protest General Motor’s decision not to sell its European subsidiary, and Germany’s government vowed to recover euro 1.5 billion ($2.2 billion) it loaned GM to finance the sale.

    Klaus Franz, Opel GmbH’s top employee representatives, said workers would walk out starting Thursday in brief, so-called “warning strikes” over GM’s decision to call off a deal with Canadian parts maker Magna International and Russian lender Sberbank.

    GM’s decision late on Tuesday was an abrupt end to months of negotiations that saw Germany’s government agree to provide euro4.5 billion in financial aid for the Magna deal in September, clearing the way for the deal.

    German labour leaders and government officials had favored the sale as the option most likely to preserve jobs in Germany. German economy minister Rainer Bruederlesaid the money spent to encourage Opel’s sale to the consortium would be recovered. “We will get back taxpayers’ money,” he said, referring to the loan given to Opel to keep it afloat until Magna and partner Sberbank could take it over.

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    GM Chief Executive Fritz Henderson said the decision by the company’s board was the result of an overall improvement in Europe’s business environment and GM’s health since it put the division up for sale late last year. GM once favored a rival bid by investment firm RHJ International, in part for fear that Magna and Sberbank could create competition for Chevrolet in Russia, a key market.

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