SolarWorld offers $1.3 Billion for GM's Opel

Hesse officials said 70,000 jobs in the state depend on the auto industry.

SolarWorld said it would develop a new generation of energy efficient and reduced emissions automobiles alongside successful models that Opel currently produces, should a deal work out.

"With the restructuring of the product pallet, the traditional German auto builder would offer in future especially electric and hybrid automobiles and the newest technology combining extended-range electric and combustion motors highly efficiently," SolarWorld said.

Tim Urquhart, an auto analyst with IHS Global Insight in London said he thought it was "highly ambitious and remarkable," and probably "difficult to pull off in the current environment."

"With a company with no track record in their history, it's unlikely," he said.

Urquhart said it would take "multiple billions" of euros to enter the automotive sector. Other companies that have tried to do so in the past have "fallen badly on their backsides."

The news sent shares of SolarWorld 19% lower to 13.20 euros ($17) in afternoon trading.