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

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries