UPDATE 2-German union gives Opel more time for deal on cuts

* IG Metall aims for deal ``as soon as possible''

* Labour does not want time pressure to jeopardize talks

* Opel expected to pay backdated wages in lump sum -source

FRANKFURT/HAMBURG, Oct 26 (Reuters) - A German labour union extended a Friday deadline for a deal with loss-making carmaker Opel over a turnaround plan that includes thousands of job cuts and the closure of its Bochum plant in 2017.

With Europe's car market tumbling, labour representatives at the General Motors unit are under increasing pressure to accept deep cuts, even more so after rival Ford's decision this week to close two assembly plants in Europe, reducing capacity by 355,000 vehicles and its local workforce by 13 percent.

Currently, all of Opel's German plants and their 20,800 workers are protected by a labour contract with IG Metall that runs through the end of 2014.

Trade union IG Metall said in a statement on Friday that the goal was to reach an agreement ``as soon as possible''.

``We simply need more time and do not want to endanger an equitable agreement due to time pressure,'' Opel labour leader and union member Wolfgang Schaefer-Klug said in the statement, without providing further detail or a new timetable for talks.

One of IG Metall's key bargaining chips in the talks with Opel management has been that it agreed in June to let Opel defer payment of an industry-wide 4.3 percent wage increase to its German workers until Oct. 31. That has allowed Opel to hold on to more cash as it tries to return to profitability.

Initially, IG Metall and GM had set the deadline for talks for that date, but the union later said it aimed for a deal by Oct. 26.

A source at IG Metall said on Friday that the union would ask Opel to pay some backdated wages that had been deferred, but declined to say whether it would demand the full amount.

Another source close to the talks said employees would receive all their backdated wages for May through October in one lump sum.

Opel confirmed the agreement to extend talks but declined to comment on whether any backdated wages would be paid and if so how much of a financial burden that would present.

More details are expected to emerge after the union informs its members at its German production plants this weekend, when hundreds are expected in Ruesselsheim on Saturday and Bochum on Sunday, for example.