UPDATE 1-Germany says no decision yet on Opel state aid

* No aid decision yet from Berlin – deputy econ minister

* FT reported task force found revamp plan didn’t merit aid

(Combines stories)

BERLIN, Feb 18 (BestGrowthStock) – A German government advisory
panel has not yet decided whether General Motors’ [GM.UL]
reorganisation plan for European arm Opel merits state aid,
Deputy Economy Minister Jochen Homann said on Thursday.

He was responding to a report in the Financial Times
newspaper that the task force, which groups senior government
officials and an investment banker, had deemed the plan
“unqualified for government loan guarantees”. [ID:nLDE61H08P]

“That is not the case,” Homann told Reuters, reiterating
that Opel would be treated the same as any other company in
terms of its request for state aid.

GM is asking European countries with Opel plants to
contribute 2.7 billion euros ($3.7 billion) of aid towards the
3.3 billion euro revamp. Germany alone is being asked for 1.5
billion in loans or loan guarantees. [ID:nN09109443]

German Economy Minister Rainer Bruederle has publicly
expressed scepticism about the plan, but German states with Opel
plants have been more open to the idea of using taxpayer funds
to help save as many jobs as possible.

The Opel plan envisages 8,300 job cuts, a plant closure in
Belgium, 20 percent capacity cuts and a return to profit by
2012.

Investing

(Reporting by Gernot Heller, Writing by Sarah Marsh; editing
by John Stonestreet)

UPDATE 1-Germany says no decision yet on Opel state aid