Vw, General Motors Near Lopez Settlement

VW in 1993, the news weekly Der Spiegel said on Saturday.

The executive resigned as VW's production chief on Friday.

VW could face penalties totalling billions of dollars after a US court decided earlier this week the GM complaint could proceed under the Racketeer Influenced and Corrupt Organisations Act (RICO).

In an advance release from Monday's edition, Spiegel said VW supervisory board chairman Klaus Liesen and Lower Saxony state premier Gerhard Schroeder had drawn up a proposed out-of-court settlement with GM executive committee chairman John Smale. Lower Saxony is VW's largest shareholder.

Asked in an interview with the Sueddeutsche Zeitung about the chances for a settlement, Liesen said: Time will tell.

 

Liesen said prosecution under RICO required proof of a conspiracy, a story he said not even the GM side could believe.

Spiegel said now that Lopez had left VW, fulfilling the first of GM's conditions, Smale had signalled GM might soften its other demands for an apology and a financial settlement.

The proposed deal included a commitment by VW to buy GM parts, but Smale's plan had opponents within GM who were insisting the case go to court, the magazine said.

Spiegel said Lopez would receive a four million mark settlement for leaving VW, the value of his contract up to its expiry in 1998.

Bild newspaper reported the value of the settlement was 11 million marks.

Meanwhile Focus magazine said GM's German subsidiary Adam Opel AG was among the hardline factions insisting on the fulfilment of the remaining conditions.

A VW spokesman said the company would have no comment on the reports.