BERLIN - THE German government said on Friday it would act quickly to help car maker Opel, which has asked for state-backed loan guarantees in the event its US parent group General Motors goes bankrupt.

'If we need a quick decision, the government is able to react very fast,' if necessary 'before Christmas' on Dec 25, government spokesman Thomas Steg told a press conference in Berlin.

He nonetheless added that 'for the time being, Opel has not signalled that it is in a situation where it needs a state guarantee' to obtain crucial financing from banks.

Opel asked the government a few weeks ago to back loans of more than one billion euros (S$1.9 billion) if the financial situation at General Motors, its US parent company, got worse.

GM appeared to be in dire straits on Friday after a plan worth billions to rescue ailing US automakers collapsed in the US Senate, raising the prospect of imminent bankruptcy for GM and US rival Chrysler.

The works committee at General Motors Europe called the Senate vote a 'catastrophe' but added that 'Opel is healthy and competitive in terms of productivity, quality and product range.' Mr Steg, who is the deputy spokesman for German Chancellor Angela Merkel, repeated on Friday that Berlin would only help Opel if it was sure that public funds remained in Germany. -- AFP