The German economic affairs ministry has indicated that the state employment agency Bundesagentur fur Arbeit would take over part of training costs for employees at the Russelsheim site of Adam Opel if parent General Motors opts for the German site for the production of the new Opel Vectra and Saab 9-3 models, European Intelligence Wire reported, citing the Handelsblatt newspaper.

The report noted that the site is competing with the Trollhattan site of Swedish sister company Saab for the deal, and the Swedish government has indicated that it would invest a nine-figure sum in local infrastructure if the Saab site won the bid.

According to the report, it is estimated that the offer by the German government could save General Motors a low eight-figure sum.

Experts reportedly are currently analysing the cost concepts presented by the management at Russelsheim and at Trollhattan, and the European management of General Motors is expected to reach a decision early next year.

The US group has decided to concentrate production of the European mid-price models at one site to return business in the region to profit. Russelsheim has around 5,600 employees, European Intelligence Wire said.

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