Loading...
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

opel
NEXT ON FIN24X

 
 
 

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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Africa: Land of Billionaires!

Find out who are the richest of the richest in Africa!

 
 

Men24.com

Best bro movies 2014
Every man should be able to do these three things
Goalkeeper saves five penalties with his FACE!
Hottie of the day: Jesselyn

Money Clinic

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