An analyst says that failures to find agreements on the future of GM's European operations have raised the likelihood of Opel having to file for insolvency.

Negotiations resume in Berlin today.

Sabine Blümel, analyst with Creative Global Investments (LLC), told just-auto today that the failure on the part of the US Treasury to improve on guarantees and strong European resistance could make the trustee model unacceptable for the German government.

"Under an insolvency filing, Opel would be placed under administration, restructured and likely broken up," she said.

Opel is believed to have short term liquidity only until the end of June.

Opel is also believed to have postponed payments, including some for the forthcoming Astra, into the third quarter and, according to the Financial Times, is expected to incur a US$3bn loss in FY09.