• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Germany sceptical on GM aid for Opel

Jun 09 2010 13:19

Related Articles

Doubts raised over Opel plan

GM to triple Opel investment

Opel to unveil restructuring plan

Thousands to lose jobs at Opel

Opel sales surge in Germany

GM to pay for Opel deal: Merkel


Berlin - German Economy Minister Rainer Bruederle underlined on Wednesday his strong reservations about a request from General Motors for big state loan guarantees for its Opel unit.

Bruederle said the once-stricken US auto giant had now found its feet and could apparently cover its own investments without €1.1bn in German aid.

"General Motors is in a position to move to modernise itself on the basis of its own strengths," he told ARD public television.

"If I have 10 billion in liquidity in my coffers, if I make nearly a billion in profit in the first quarter, if I have outstanding chances on the stock market, you have to add it up and then you have resources to do something of your own accord."

Bruederle said it was only "normal" that a parent company looks after its unit "and does not just foist off the problems elsewhere."

"That is why the main responsibility is clearly with General Motors, the owner."

A government committee in Germany, home to four Opel plants and half of GM's 50 000 European employees, was expected to deliver a recommendation Wednesday on the automaker's request.

GM is prepared to pump €1.9bn into the restructuring plan but is seeking €1.8bn in loan guarantees from European governments including €1.1bn from Germany.

Recent comments from Bruederle and the conclusions of a sub-committee last week have indicated that Berlin will turn GM down.

Bruederle on Sunday ruled out any "special treatment" for GM, which wants to cut around 8 000 jobs in an effort to turn around the loss-making Opel.

The final decision on GM's request rests with Merkel's government.

 - AFP




Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

20 self-made teenage millionaires

From selling lemonade to building webpages, these young entrepreneurs made a pretty fortune!


Luxury living

Top 10 richest musicians of all time
10 most expensive cars In the world
10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote