Germany Confident About UK Opel Loan

Magna expects to get the final signature for Opel today but, before reaching this milestone, the involved parties have to talk about the loan packages to be offered by countries hosting Opel plants. After Germany has already approved the state loan, Opel's home country is confident that the United Kingdom will do the same in the near future.

"We're still waiting for the respective commitments," German Economy Minister Karl-Theodor zu Guttenberg told reporters in Berlin according to Reuters. "However, from what I hear, the situation in Britain on this has got a lot better."

Meanwhile, Magna is working with labor unions in those Opel countries to reach an agreement on the proposed job cuts. The Canadian - Austrian partsmaker came to a conclusion in the United Kingdom but failed to sign an agreement in Spain, a country that strongly oppose Magna's job-cutting plan.

However, the company yesterday submitted a revised offer to Spanish unions but there are no details on the aspects that got improved following negotiations between the two sides. Magna last week revised its original proposal, reducing the amount of job layoffs from 1,650 to 1,300.

"Magna have tabled a new plan for the plant today, which involves making 100 percent of the five-door Opel Corsa," Ana Sanchez, an official with the Comisiones Obreras union at the plant said last week.

Spanish workers have already protested against Magna's job cuts and even demonstrated on the streets of Zaragoza alongside politicians and businessmen.

"We will fight tooth and nail to defend every job at the plant," the president of the Aragon region said during the protests.