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قديم 09-06-2010, 10:50 PM
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Report: German government rejects $1.3 billion Opel aid request

Filed under: Europe, Government/Legal, GM, Earnings/Financials, Opel, UAW/Unions


General Motors is hard at work restructuring its brands here in the U.S., but we mustn't forget about overseas divisions, like Opel, that still require some financial aid to get things up and running at full capacity again. As we reported last month, GM came to an agreement with Opel's German workers - labor heads have agreed to do without €1.26 billion in earnings over the next four years (approximately $1.59 billion), saying that the money is best saved for the development of Opel products.

Now, more bad news strikes as the German government has denied GM's request for €1.1 billion ($1.3 billion U.S.) in loan guarantees for Opel. Rainer Bruederle, Berlin's economy minister, told reporters that he is "confident that Opel has a good future without credit guarantees," though labor unions are less than pleased with the final decision. Opel works council chief Klaus Franz went so far as calling the perceived snub "shameful."

Still, GM is prepared to support Opel's restructuring with €1.9 billion in finances, though the automaker is hoping to seek out €1.8 billion in loan guarantees from different European governments, including the rejected €1.1 billion from Germany. Opel's restructuring is still taking place regardless of monetary support, but added financial aid would indeed help the process. Here's hoping.

[Source: AFP via Google]Report: German government rejects $1.3 billion Opel aid request originally appeared on Autoblog on Wed, 09 Jun 2010 13:27:00 EST. Please see our terms for use of feeds.


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