GM executives will meet German officials in Berlin for talks this week. However, the U.S. car maker is becoming increasing confident in negotiations following a successful restructuring while in Chapter 11 bankruptcy protection and a boost to European car sales from scrappage schemes.

Given Berlin’s support for a bid from car parts group Magna International, GM believes that it has two options – the German-backed Magna bid, or an alternative plan, potentially with RHJ, which involves keeping a larger stake in the business and is backed by the U.S. and other European governments, including the UK.  
This is believed to have been presented by chief executive Fritz Henderson at a board meeting on Friday and requires support of $4.3bn (£2.6bn).
The company wants to avoid offloading its assets cheaply as the market shows signs of improvement, and is demanding more information from Germany on how it would support a deal.
Chancellor Angela Merkel has indicated Germany is ready to offer up to €4.5b (£3.9bn) in loan guarantees to support a bid from Magna, although GM has doubts about Magna’s plans to expand into Russia and prefers a rival bid from RHJ International. Germany is supporting Opel with a €1.5b bridging loan.
Opel workers, desperate for their future to be confirmed, could demand holiday bonuses totalling €70m, which they had previously agreed to forgo, if a deal is not struck very soon. Union boss Klaus Franz warned: “Our patience is absolutely at an end.”
(Source: Telegraph.co.uk)