GM begins crisis talks

General Motors (

) is in crisis talks with unions and governments throughout

after the United States Congress rejected a $14bn (£9.4bn) loan package to support its automotive industry.

In a statement, the world’s largest automaker said that it was ‘very disappointed in this development’, however it would continue to look at options to stabilise the business in the current financial difficulties.

The statement continued: ‘As it pertains to GM Europe, we are working with our labour representatives and the European governments where we have big operations to provide liquidity for sustaining operations, while the US team pursues its options.’

The Spanish state of Aragon, where the GM/Opel plant is located, has agreed to support the plant with credit guarantees of €200m.

The company is also in talks with the German government, where GM brand Opel has production facilities, regarding the continuation of a credit guarantee.

While GM Europe seeks to manage its cost structure and continue key product programmes, the rejection of the $14bn rescue plan leaves GM’s US operations in a critical state.