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No aid for German auto sector

Nov 17 2008 11:25

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Frankfurt - German Finance Minister Peer Steinbrueck ruled out a financial rescue package for the auto sector on Monday ahead of a top-level crisis meeting over the situation at Opel.

"An economic programme for the entire automobile industry makes no sense," Steinbrueck told the mass-circulation daily Bild, stressing that the state is "not responsible for errors committed by industrialists."

Economy Minister Michael Glos has also voiced opposition to a bail-out plan for the auto industry, which has been hit by a severe sales slump owing to the international economic slowdown.

Opel asked the German government for loan guarantees to help it keep running after parent company General Motors revealed it was close to bankruptcy.

Chancellor Angela Merkel has called Opel directors and labour leaders in for a meeting on Monday.

Opel employs 25 000 workers in Germany.

The trade union IG Metall has already called for conditions to any state aid.

"Political leaders should imposer tougher conditions than usual in this case," union leader Armin Schild told the daily Berliner Zeitung.

He demanded that jobs be guaranteed and that Opel's dependency on its parent company be reduced.

- AFP

 
 
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