SCENARIOS - Potential outcomes for GM's Opel unit

FRANKFURT (Reuters) - Germany's state and federal governments will decide by Christmas whether to extend a guarantee of 1 billion euros (843,000 million pounds) to Opel should its Detroit-based parent General Motors file for Chapter 11 bankruptcy protection.

GM Europe has ruled out a collapse of the German carmaker, which traces its roots back to 1899 and has been part of GM longer than rival Volkswagen has existed.

Nonetheless, GM Europe and Opel executives met on Monday with labour leaders, German Chancellor Angela Merkel and top cabinet officials to discuss the carmaker's future.

The following are possible scenarios for Opel:

OPEL CONTINUES OPERATIONS UNAFFECTED

Should the worst-case scenario hit, with GM forced to apply for bankruptcy protection, the U.S. carmaker may decide to leave its European operations untouched by the measures.

Assuming Opel were unable to fund its own operations, GM might still favour providing enough cash to keep Opel alive, since the Russelsheim-based carmaker enjoys a strong franchise with small, fuel-efficient vehicles like the Corsa and Meriva.

GERMANY BACKSTOPS OPEL DEBT

The pledge should help Opel, a separate legal entity in Germany, to raise cash to fund operations next year.