No decision over German state aid to Opel, says economy minister

Article by Christian Andrei, on August 26, 2010

A meeting of state and federal officials will take place on Wednesday but Germany's Economy Minister Rainer Bruederle clarified that a decision about German state aid to General Motors Co.'s Opel unit will not be made here. Rather, only a debate is expected to occur at this meeting of the officials who are responsible for reviewing loan guarantee requests.

Bruederle reasoned that this is only an advisory body. It is believed that a decision on state aid will be made by senior members of the government in conjunction with states affected by Opel's restructuring.

For GM'srestructuring, it wants 1.8 billion euros from countries with Opel/Vauxhall plants in an effort to make the unit profitable by 2012. To date, UK has promised to provide 300 million euros.

But the bulk of the amount is expected from Germany where GM is seeking about 1 billion euros at this country where Opel and half of GM's European workforce are based.

In early March, GM said that it would give 1.9 billion euros ($2.6 billion) in equity and loans to Opel. This triples its funding and cuts its request for state aid in a proposal to win over European governments and labor.

Opel intends to terminate 8,300 jobs in factories across Europe, shut down a factory in Antwerp, Belgium and lower capacity by 20%.

Germany seems to not be enthusiastic about the concept of handing over taxpayer funds into Opel after GM opted to keep Opel rather than sell it to Magna International Inc. Germany politicians want guarantees that Opel aid won't be diverted to GM in the US. [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

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 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