The proposed acquisition of Opel – the German division of general motors (GM) – by solar firm SolarWorld will only go ahead if potential US and German bailouts for the car manufacturer fail.
GM has said it will run out of cash as early as January if it does not get help from governments, which it considers preferential to a private purchase.
On Wednesday, the markets were shocked by SolarWorld announcing its offer to buy Opel's four German factories and a research centre for €1bn (£840m) to create green vehicles of the future.
GM immediately rejected the offer and said the division was not for sale, as it did when reports emerged that German car dealers were planning to table a bid for Opel on Thursday.
But both the dealers and SolarWorld said on Thursday that they were getting positive noises from inside Opel.
In an interview with Deutschlandfunk radio, SolarWorld chief executive Frank Asbeck said: "This is already in the heads of the developers at Opel, but they must be freed from the restraints of GM."
SolarWorld has some car making experience – the company sponsored and co-developed a high-performance solar sports car known as the "sun mobil" as part of a competition.
But German chancellor Angela Merkel has indicated that a bailout for GM's operations in Germany is a possibility, though the German government will wait to see whether the US bails out GM's operations stateside.
GM's shares swung wildly yesterday, as conflicting reports of a government bailout emerged hours apart. The latest reports indicate that an agreement is unlikely.
If, as seems likely, the US fails to negotiate a bailout, then the German government will swing into action.
Angela Merkel has said the German government would aim for a decision on any Opel support by Christmas.
A government spokesman said this morning that no decision would be made until Opel had made an official request.
It is believed the German division of GM needs a cash injection of close to €1bn in order to survive.
Huge increase in tax breaks proposed for manufacturers in the wind, geothermal and solar sectors in the US as part of wider job creation programme 17 Dec 2009
Senate delay means no bill likely before Copenhagen 04 Nov 2009
Holy See confirms plans to invest €500m in Europe's largest solar farm 22 Apr 2009
Angela Merkel bolsters clean tech credentials with plan to put five million electric cars on German roads by 2030 24 Aug 2009
Heavily trailed proposals to ban sending recyclable material to landfill made public 18 Mar 2010
Government announces extra £4.8m to support offshore wind R&D 18 Mar 2010
Secretary-General and climate envoy cross swords over the extent to which UN talks should be supported by separate negotiations between top polluters 18 Mar 2010
More news
As a journalist, I spend a fair amount of time defending the much maligned media industry to friends and family.... 18 Mar 2010
Andrew Williams casts his eye over some of the most popular green driving aids on the market 16 Mar 2010
From hydropower hot spots to record-breaking Texan winds, we run down the top stories from the past week 12 Mar 2010 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
