GM dismisses Opel overture, auto aid calls mount

By Noah Barkin and Christoph Steitz

BERLIN/FRANKFURT (Reuters) - General Motors dismissed a surprise overture for its cash-strapped German unit on Wednesday as calls mounted for European governments to come to the aid of automakers hit by the global financial crisis.

German solar energy company SolarWorld shocked markets when it unveiled plans to bid for the German plants of GM unit Opel, vowing to turn the automaker into Europe's first "green" car company.

But GM, itself seeking a multibillion dollar bailout from the U.S. government, was dismissive of the takeover plan, which SolarWorld said was conditional on a complete separation of Opel from its parent company and on state guarantees from the German government.

"This is pure speculation. We are not going to comment on that. Opel is not for sale," said Karin Kirchner, a spokeswoman for GM Europe in Switzerland.

The SolarWorld announcement came days after Opel, which traces its roots back to 1899 and has been part of GM since 1929, announced it was seeking about 1 billion euros in aid from the German government because its financial situation was threatened by the troubles of its U.S. parent.

GM is lobbying Congress for government bridge loans to survive a sharp downturn in the sector that has hit manufacturers across the globe.

A proposed $25 billion bailout of U.S. automakers failed to make headway in the U.S. Senate on Tuesday despite warnings from Detroit's "Big Three" automakers -- GM, Ford and Chrysler -- that a failure to act could result in wholesale liquidation.

GM shares fell 14.2 percent to a 66-year low of $2.65 in early trading on Wednesday.