UPDATE 2-GM CEO: Read my lips, Opel not for sale

* Opel lost $1.6 billion last year

* GM dropped plans to sell the European unit in 2009

* CEOs often say unit not for sale until sale -- analyst

* Akerson frustrated with Opel's turnaround (Adds analyst comments, background, bylines)

By Bernie Woodall and Deepa Seetharaman

DETROIT, July 27 (Reuters) - General Motors Co (GM.N) Chief Executive Daniel Akerson has weighed in strongly on the future of its Opel business, saying the European unit was not for sale.

"We don't comment on speculation -- and there has been a lot of speculation -- but I will say this: Opel is not for sale," Akerson said at a news conference on Wednesday when asked about Opel's future.

Akerson was speaking at a GM plant to officially launch labor talks with the United Auto Workers union.

Speculation about Opel's future began in early June with reports by German media that the European unit could be sold and possible buyers included Chinese automakers or Volkswagen AG (VOWG_p.DE).

Whether true or not, Akerson's statement was necessary to protect Opel's sales and employee morale, said Jefferies analyst Peter Nesvold, who has a "hold" rating on GM's shares.

"Most CEOs in this position will tell you a division is not for sale until it's sold," he said. "I've seen the story before."

Opel Chairman Nick Reilly said on June 30 that GM was "very satisfied" with Opel's progress, but failed to quash rumors GM was mulling a sale of the money-losing unit. [ID:nN1E75T1RQ]

However, Opel remains a high-cost player in a low-growth region, in a segment dogged by cutthroat competition, leading to speculation of a sale or labor concessions by its workers.

Earlier this month, when criticizing VW CEO Martin Winterkorn for speculating on Opel's fate, GM failed to address specifically whether Opel was for sale. [ID:nN1E76C1S8]

German government leaders and Opel union officials have been frustrated by GM's refusal to address the rumors directly. [ID:nN10223838]

Opel officials were not immediately available to comment on Wednesday.

In 2009, GM dropped plans to sell Opel to Canada's Magna International Inc (MG.TO) after months of negotiations and launched a restructuring to get the unit, which lost $1.6 billion last year, back on track. GM Europe posted a profit in the first quarter and Reilly said Opel had gained market share.

Opel is expected to break even this year and show a profit in 2012, but its management said it will likely take about five years to restore the brand's image in its home market.

VW's Winterkorn told a German newspaper this month he did not think South Korean automaker Hyundai Motor Co (005380.KS) would be interested in buying Opel, but Chinese automakers would love to get access to Opel's technical center and distribution network.

People familiar with GM's thinking previously told Reuters Akerson was reviewing options for Opel, a unit he wanted to sell in the past and with which he remained frustrated. [ID:nLDE7580ZY]

Akerson was one of only two GM board directors to vote in late 2009 against keeping Opel, believing Europe was a market of national champions -- VW in Germany, Fiat SpA (FIA.MI) in Italy and Renault SA (RENA.PA) in France -- and pan-European luxury brands such as BMW AG (BMWG.DE) and Daimler AG's (DAIGn.DE) Mercedes, a person familiar with the executive's thinking previously said. [ID:nN14240928]

Opel is neither and Akerson believed it would be a long, uphill battle to fix it.

At GM's June annual meeting, Akerson was clear where Opel stood in GM's portfolio, calling it a regional brand that would support the two global brands of Chevrolet and Cadillac.

Some analysts and bankers speculated GM's refusal to deny the rumors was a way to pressure German hourly employees for wage concessions.

Several analysts also said an outright sale of Opel would be a challenge because of the heavy degree of technology and platform integration between Opel and the rest of GM.

The Times of London reported this month that GM killed the sale of its Opel and Vauxhall brands in 2009, citing GM insiders as saying they had concerns Russian automakers would gain access to Opel's technology and patents. [ID:nL3E7IP144] (Additional reporting by Ben Klayman in Detroit and Edward Taylor in Frankfurt, writing by Ben Klayman; editing by Matthew Lewis and Andre Grenon)