EU calls for crisis meeting on help to GM's European factories

BRUSSELS, Mar. 5 (Chinese media) -- The European Commission called on Thursday for a crisis meeting among European Union (EU) countries with General Motors factories to coordinate their response to the U.S. carmaker's crisis.

"Member states where we have GM sites in Europe should hold an extraordinary meeting and reflect on the way we want to react," EU Industry Commissioner Guenter Verheugen said after a scheduled meeting of EU industry ministers in Brussels.

"I would like to know what the different member states that have GM sites are considering doing," he said.

GM has production facilities in a number of EU countries, including Germany, Sweden, Poland, Spain, Belgium and Britain. There are also subcontractors in other EU member states.

The U.S. car giant came under threat of bankruptcy after an annual report released by its auditors on Thursday cast doubt over its ability to survive.

But GM's failure would have significant impact on Europe since the carmaker employs about 55,000 people in the continent and there are up to 300,000 Europeans who depend on it for jobs, including parts suppliers and dealers.

GM has already asked Germany for 3.3 billion euros (4.1 billion U.S. dollars) to help its European major subsidiary Opel and may seek further support from other EU governments. It wants to establish Opel as a separate entity, which could survive from any failure of GM.

But a possible deal between GM and Germany on the future of the carmaker's European business aroused concern among other EU countries, including Belgium which fears its Opel factory in Antwerp would be sacrificed.

Verheugen said the aim of the crisis meeting, whose date has not been fixed, is to promote coordination among relevant EU countries.

"Any actions in Europe to be coordinated and that it is not each for himself," he said.

Verheugen ruled out the possibility of any EU rescue package for GM.

"There is not a single euro in the European budget to rescue sectors or companies ... There will be no sector specific rescue plans whatsoever. We are still in a market economy," he said.

The EU industry chief also attacked GM's failure to disclose its problems in Europe.

"The way the American mother company is dealing with the issue of Europe is not acceptable," he said. "Enough is enough. We expect GM to disclose everything. What are their plans with their European daughter companies and locations? What are they doing with property rights, and especially is GM prepared to maintain responsibility for the European companies or not?"