General Motors' German unit Opel/Vauxhall has agreed a restructuring plan which aims to save as many jobs and factories as possible but needs €3.3 billion (£2.93bn) in state aid.
GM is expected to split Opel off into a separate unit which would still remain linked with GM, but would be open to outside investors to take more than a 25% stake.
GM Europe President Carl-Peter Forster told a news conference today: “There are still no decisions about plant closures or forced layoffs.”
Senior GM Europe labour leader Klaus Franz wants to share job cuts across European plants like Germany's Bochum factory, Antwerp in Belgium and Ellesmere Port in Britain, to save any single site from being closed.
German government spokesman Ulrich Wilhelm said "intense consultations" were needed among countries that were affected.
Daimler has denied rumours that it is in talks to buy Opel’s Eisenach plant where its Corsa is built.