Berlin – Berlin intends to fence off General Motors assets in Germany and place them in a trust if the US parent fails, Economics Minister Karl-Theodor zu Guttenberg said Thursday after meeting senior ministers.

Creating a legal trust would allow more time for negotiations with potential bidders for GM Europe, which makes Opel and Vauxhall cars. Fiat of Italy and Canada-based Magna have both shown interest in a buyout if the terms are right.

Berlin has ruled out nationalizing Opel. Zu Guttenberg said a trust would only take effect if there was a sustainable proposal on the table from at least one potential investor. Zu Guttenberg gave a deadline of May 20 for a proposal to be filed.

GM is expected to file for insolvency at the start of next month.

Trusts are legal constructs that can own property for the benefit of somebody else, and are usually run by boards of trustees.

Transferring the German assets to a trust would mean they could not be seized by creditors. Germany has used similar trusts in the past to bring industrial assets under government control without actually making them government property. (dpa)