WASHINGTON, June 1 (Reuters) - The Obama administration denied on Monday that it insisted that European automaker Opel be barred from the U.S. and Chinese markets after General Motors Corp sells a majority stake, saying that any such decisions were up to GM.
The Washington Post reported that Opel's new controlling
shareholder, Magna International
This would shield GM's surviving brands, such as Chevrolet and Buick, from having to compete in the automaker's two most important markets with Opel vehicles that share common GM-developed chassis platforms and that would be similar in size and features.
"Newspaper accounts that Treasury is insisting that Opel stay out of the U.S. or Chinese markets are incorrect. The U.S. government strongly supports free markets," Treasury spokeswoman Jenni Engebretsen said.
However, an Obama administration official added that to the extent any arrangements were made by GM regarding Opel's access to the U.S. or Chinese markets, these were made solely as business decisions by GM, and not in response to requests by the U.S. government.
The U.S. government will own about 60 percent of GM's common equity in the restructuring plan now underway in U.S. bankruptcy court in New York. Canada will take a 12 percent stake.
The plan is aimed at making GM profitable even if auto market conditions remain difficult and industry sales run at about a 10-million-unit annual rate.
In Detroit, GM Chief Executive Fritz Henderson said it was very important that GM reach agreement to resolve the future of Opel before GM filed for bankruptcy protection on Monday.
He said he was personally involved in "middle of the night" negotiations on Opel and the parties arrived at a solution that works for the automaker, including good support from the German government.
Magna has said it intends to use Opel, with the bulk of its operations in Germany, as a platform to push into the growing Russian car market. (Reporting by David Lawder; Editing by Dan Grebler)