GM’s plan to restructure Opel is not very convincing, sources say

Article by Christian Andrei, on August 26, 2010

According to an internal ministry review in Germany, General Motors Co.'s plan to restructure Opel is not very convincing, Spiegel magazine reported last Friday.

Last Tuesday, Opel CEO Nick Reilly introduced a restructuring plan, under which 11 billion euros ($15 billion) will be invested by 2014 and 8,300 jobs will be cut in the carmaker's attempt to break even by 2011 and make a profit the next year.

Spiegel said that the ministry review questions its viability and sees the risk of state aid for Opel unjustifiably ending up with parent company GM in the US in the form of license charges. 

GM is seeking 2.7 billion euros in state aid from countries hosting plants (Britain, Germany, Poland and Spain) to help finance the 3.3 billion Opel revamp. Opel is asking Germany for 1.5 billion euros in state aid to fund 4,000 job cuts in its home country.

Opel is asking for 1.2 billion euros from Spain, the UK, Austria and Poland. Last week, German Economy Minister Rainer Bruederle said that it will have to examine the documents carefully.

It can be recalled that Bruederle has been calling on GM to fund its subsidiary's operations itself, and not just contribute 600 million euros. [via autonews]

Topics: gm, opel, europe

If you liked the article, share on:


Login or Create new account to add a comment!


Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016
Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016