DETROIT: General Motors' top executive said yesterday that the carmaker could tap some of its US$50 billion ($69.4 billion) in US government aid to help restructure GM's European Opel unit.

The statement came as thousands of Opel workers walked off the job across Germany in protest at GM's decision to abandon the unit's sale to new owners.

Chief executive Fritz Henderson said GM would use US government money for Opel only if necessary, and it would try to finance the US$4.5 billion restructuring with loans from European countries, money generated by Opel and by reducing royalties that Opel pays GM for use of technology.

Henderson's statements come two days after GM's board shocked German leaders and labour unions by rejecting a plan to sell 55 per cent of Opel to a partnership of Canadian car parts supplier Magna and Russian lender Sperbank.

The move angered German and Russian politicians as well as labour leaders, who had expected the Magna deal to go through. German workers left their jobs en masse, fearing widespread layoffs as GM tries to shrink Opel's manufacturing operations to match demand for its vehicles.

Russian Prime Minister Vladimir Putin asserted that GM had exhibited an "arrogant attitude" in abandoning months of negotiations. German Foreign Minister Guido Westerwelle, visiting Washington, said that "jobs must be protected".

Workers at Opel's headquarters in Ruesselsheim vented their anger at a rally. One group carried a black coffin with the GM and Opel logos; others held placards such as "GM get lost" and "Hands off Opel".

At GM's headquarters in Detroit yesterday, Henderson told reporters the company had a lot of work ahead in repairing its relations with German labour.

Unions and employees had offered cost-cutting concessions to ease a Magna deal, such as forgoing pay increases, but those offers are now off the table.

GM will face a new battle to secure concessions for its own restructuring plan - and has raised the prospect of a bankruptcy if it is blocked.

Henderson said GM was forming a transition team to lead the restructuring, and would soon present a plan to governments in Germany, Spain, Great Britain and Poland, as well as labour leaders.

GM has said the number of layoffs would be about the same as outlined in the Magna plan - about 10,500, or 20 per cent of Opel's workforce.

Henderson would not comment when asked about what factories would be closed.

The Detroit carmaker is focused on getting financing to fix the money-losing Opel, which for years has had factory capacity that is far higher than its sales. Just how much of the money would come from European governments and how much from GM will have to be negotiated.

- AP