Nov. 20 (Bloomberg) -- Opel, the General Motors Corp. unit that's asking the German government for more then 1 billion euros ($1.25 billion) in loan guarantees, is seeking to reassure car buyers that may be spooked by the woes of its parent.

``Opel is financially solid and as a brand and a company not at risk,'' the Ruesselsheim, Germany-based company said in a full page advertisement that ran in national German newspapers, including Bild, Die Welt, Frankfurter Allgemeine Zeitung and Sueddeutsche Zeitung, Financial Times Deutschland, and Handelsblatt.

The unit, which has four German factories that employee 25,700 people, has been a hot topic in the German media since company executives met with Chancellor Angela Merkel on Nov. 17. At the meeting, GM Europe President Carl-Peter Forster made a pitch for government guarantees to help it secure fresh funding in the event that money from GM dries up. GM has been unsuccessfully pleading with the U.S. government for an industry bailout as its cash dwindles.

``In crisis situations, it makes sense to appeal directly to customers,'' said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Gelsenkirchen, in a telephone interview. ``Buyers have become more cautious, and all the concerns about GM add to the uncertainty.''

Opel will run the ad on Nov. 22 in regional papers in the states of Hesse, Rhineland-Palatinate, North Rhine-Westphalia, and Thuringia, where its plants are located, spokesman Andreas Kroemer said.

Part of GM Since 1929

GM has cut production by about 40,000 vehicles by closing plants for two to three weeks. It's currently in talks with workers about further cuts, which may include reducing work hours. Solarworld AG, a German maker of solar panels, yesterday made an offer to take over Opel's German operations. GM dismissed the proposal and said the company, which has been part of GM since 1929, isn't for sale.

Opel's ad said the proposed guaranties are to secure jobs at its German factories as well as to protect the 75,000 workers at dealerships, service stations and parts suppliers that depend on the carmaker. Merkel has said the government will make a decision by Christmas.

The ad includes an appeal to customers to check out Opel's new mid-size Insignia sedan, which was recently voted European Car of the Year by a group of trade journalists. The car, with a starting price of 22,700 euros, hits showrooms on Nov. 22.

GM has promised to invest 9 billion euros in Opel through 2012 as part of an effort to renew the brand's lineup by introducing 20 new models. Opel plans to follow up the launch of the Insignia with a new version of its best-selling Astra next year. The Astra competes with the Volkswagen AG's Golf. A new version of the Golf has recently arrived at dealers.

To contact the reporter on this story: Chris Reiter in Berlin at creiter2@bloomberg.net

Last Updated: November 20, 2008 10:00 EST