GM rejects SolarWorld's takeover offer for Opel

Even as a German regional government approved €500 million ($631 million) in loan guarantees to automaker Opel, in case the parent company General Motors Corp (GM) goes bankrupt, there is a surprise in store for the beleaguered German auto maker.

SolarWorld, a German solar energy company, has revealed plans to bid for the German factories of Opel and GM's development center in Ruesselsheim.

Solarworld said it would provide 250 million euros in cash and 750 million euros in credit lines, pending government approval, to acquire Opel's four German factories and says it would turn Opel into Europe's first "green" car company.

SolarWorld says it plans to restructure the product range of Opel to offer in future electric and hybrid automobiles and the newest technology combining extended-range electric and combustion motors highly efficiently.

SolarWorld's offer is conditional on Opel completely separating from its US parent and on state guarantees from the German government.

The company said it would also seek compensation payments for each of Opel's German workers totalling 1 billion euros, matching the figure the car maker had said it would seek in state funding.