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GM says doesn't seek "protectionist" support

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BRUSSELS | Fri Mar 13, 2009 4:58pm EDT

BRUSSELS (Reuters) - General Motors said on Friday the aid it is seeking would not harm the interests of others, while European Union officials said they would adopt a coordinated approach adhering to EU rules.

GM Chief Operating Officer Fritz Henderson and GM Europe chief Carl-Peter Forster had earlier met with officials from the European Commission and 11 EU countries.

"We made clear that we are in no way asking governments to provide support that would be protectionist or counterproductive to other member states," GM said in a statement after the meeting.

Sweden's state secretary in the ministry of enterprises, Joeran Hagglund, told reporters after the meeting that officials agreed that sticking to EU state aid and single market rules was paramount.

"We have to uphold state regulations, not shove taxpayers' money into companies that are not viable on their own," he said.

The European Commission said in a statement that representatives agreed not to take any unilateral measures without informing and coordinating with each other.

GM is seeking 3.3 billion euros ($4.25 billion) in European state aid to rescue its European business, which includes Germany's Opel and UK division Vauxhall.

It has production in Belgium, Britain, Germany, Poland, Spain and Sweden, with other countries home to suppliers.

Falling demand, tighter credit and over-capacity have hit the auto industry. Europe's car sector, which employs about 12 million people directly and indirectly, warns of a 25 percent fall in output this year, with sales seen down 20 percent.

Earlier, Belgian Economy Minister Vincent van Quickenborne said EU countries needed more information from GM and that there should be no unilateral measures.

"Belgium doesn't agree with countries taking measures that are only in favor of themselves or different parts of the company in other European countries," he told reporters.

The executive European Commission has approved a French state car aid plan and other aid schemes in Italy and Spain.

(Reporting by Foo Yun Chee, editing by Dale Hudson, Richard Chang)

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