Future bleak

Merkel will be reluctant to see Opel collapse before the general election in September, as its demise would go down badly with voters, analysts said.

However, its future remains bleak as no tangible progress has been made in efforts to rescue the automobile industry icon.

GM said earlier this month that if no aid was provided, it has to eliminate thousands of jobs in Europe and shut three factories to save costs.

The chancellor will think twice before making any decision, as she risks being accused of acting unfairly towards other firms if Berlin decides to help Opel.

Deputy Economic Minister Dagmar Woehrl showed pessimism about a government bailout, saying it was "highly questionable and unlikely" that the government would inject huge amounts of cash into a company whose fate remains uncertain.

Additional unfavorable news came Friday as European Union officials and member states' ministers agreed in Brussels to coordinate their actions over car industry bailout plans.

"The parties agreed to ensure that no national measures should be taken without prior information and coordination with other involved countries," the European Commission said.

The agency added it would not inject money into any of the GM European brands without getting information from other countries involved, dashing any hope of a fast bailout for Opel.

(Xinhua News Agency March 15, 2009)