Movement seen in talks to save GM unit Opel

By Madeline Chambers and Gernot Heller

BERLIN (Reuters) - Talks aimed at securing an investor for carmaker Opel and shielding it from the imminent bankruptcy of its U.S. parent General Motors are going well, a German government official said on Friday.

Earlier, Canadian auto parts group Magna reached a preliminary agreement with GM to invest in Opel, sources told Reuters.

The two companies were presenting their plan to senior German officials and representatives of the U.S. Treasury to win their support and ensure the release of 1.5 billion euros ($2.10 billion) in financing that Opel desperately needs to survive over the coming months.

"We are seeing progress," the official said, requesting anonymity. Sources at GM and Magna also said the talks were going well.

An agreement between GM and Magna is a first step towards securing the future of Ruesselsheim-based Opel, which has been under GM's control for the past 80 years and traces its roots in Germany back to the 19th century.

The German government has been scrambling to safeguard Opel's future before GM files for bankruptcy, a step which is expected to come by Monday.

A first round of talks collapsed amid mutual recriminations on Thursday morning, prompting Berlin to set a new round of negotiations for Friday.

Italian carmaker Fiat, Magna's main rival in the battle for Opel, pulled out of talks, leaving the door open for Magna, a company that was started by Austrian emigre Frank Stronach in a Toronto garage nearly half a century ago.