Russia says GM pouring U.S. scorn on Europe

Thu Nov 5, 2009 3:29pm GMT
 
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By Darya Korsunskaya and Christiaan Hetzner

MOSCOW/RUSSELSHEIM, Germany (Reuters) - Russia accused General Motors of showing the United States' scorn of business with Europe by abandoning its sale of Opel, whose German workers went on strike on Thursday.

Thousands of auto workers protested at German factories, demanding independence from a company they said had betrayed them by reversing a decision to sell a majority stake in Opel to a Russian-backed consortium.

GM's chief executive sought to soothe the anger by saying the company was "able to run a global business" after it backed out on Tuesday of the deal to sell to Canada's Magna and its Russian partner Sberbank.

And German Chancellor Angela Merkel agreed with U.S. President Barack Obama to coordinate on the future of Opel after strong criticism of GM's move from members of her government.

But Russian Prime Minister Vladimir Putin said the about-face after months of talks would leave a bitter taste in some European mouths.

"We will have to take into account this style of dealing with partners in the future, though this scornful approach towards partners mainly affects the Europeans, not us," Putin told a cabinet meeting in Moscow.

"GM did not warn anyone, did not speak to anyone ... despite all the agreements reached and documents signed. Well, I think it is a good lesson."

German officials have condemned GM's decision, which coincided with Chancellor Angela Merkel's trip to Washington when she made her first address by a German leader to the joint U.S. Congress since 1957, and demanded the return of a loan.  Continued...

 
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