BERLIN, Nov. 17 (Xinhua) -- German Chancellor Angela Merkel said on Monday that her government will make the decision on whether and how to help General Motors' German unit Opel through its financial problems before Christmas.

    Speaking after an emergency talks with Opel representatives in Berlin, Merkel said that it is still open whether it is necessary to provide the government assistance.

Klaus Franz, leader of the Opel works council, Carl-Peter Forster, CEO of General Motors Europe, German Finance Minister Peer Steinbrueck, German Chancellor Angela Merkel, German Economy and Technology Minister Michael Glos and Hans Demant (L-R), CEO of General Motors's German unit Opel address a news conference after talks in the Chancellery in Berlin Nov. 17, 2008. (Xinhua/Reuters Photo) Photo Gallery>>>

    Opel officials said that the company is seeking more than 1 billion euros (about 1.25 billion U.S. dollars) of loan guarantees from the German government to prepare for the worst scenario that it found it difficult to get liquidity from its troubled parent company in the United States.

    Due to a massive decline in orders, Opel as well as German carmakers Daimler and BMW have announced plans to temporarily halt production in order to save costs.

    The German government has taken the matter seriously partly because that it might lead to heavy job losses. Opel employs more than 25,000 in its German plants in Ruesselsheim, Bochum, Kaiserslautern and Eisenach.

    German Finance Minister Peer Steinbrueck and Economy Minister Michael Glos both have voiced reservation about extending a loan guarantee to Opel, fearing that other carmakers would also turn to the government for help.

    German officials has also said that they want to make sure any aid provided to Opel is not transferred to its U.S. parent.