Germany expected to provide a final response on Opel request for aid this month

Article by Christian Andrei, on August 26, 2010

By the end of May, the German government is expected to provide a final response on Opel/Vauxhall's request for aid, which is initially set at 1.5 billion euros ($2 billion). Last Friday, Opel CEO Nick Reilly was on the sidelines of a meeting hosted by the American Chamber of Commerce.

He told reporters that there are signs that Germany will give an answer by the end of the month. Opel/Vauxhall, General Motors Co.'s European arm, has secured aid pledges from other European countries with Opel plants including the UK and Spain.

However, Opel would require a lower amount than it first sought from Germany, where the unit is based and where half of its 48,000-workforce in Europe is located.

Reilly added that after having told Germany how much amount in guarantees it expects to get from other countries, he believes that the amount would be "a little less than the 1.5 billion."

Last Friday, the German Economy Ministry said that Opel aid would be discussed in a meeting next week that would be attended by the committee responsible for state guarantees.

A ministry spokeswoman said that the steering committee and council would have to discuss the aid before a decision is reached.

Last year, European governments and workers got upset with GM when it junked plans to sell Opel and UK sister brand Vauxhall and requested countries with Opel/Vauxhall plants to contribute to the cost of returning the carmaker to profit. [via autonews - sub. required]

Topics: opel, germany

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