Progress was made by a German committee on the issue of providing state help to Opel, the Economy Ministry said. However, it has yet to be clarified if it would support the aid request for the General Motors Co. unit.
The decision on whether to approve the state aid is expected to be made by senior members of the government who would have to work with the states affected by Opel's restructuring. This decision will affect up to 120,000 jobs in Germany.
The committee would first have to determine if German government officials are satisfied with the responses given by GM before the decision-making could proceed.
Last Wednesday, the Loan Guarantee Committee met in the ministry to talk about Opel's request for 1.5 billion euros ($1.89 billion) in state aid only three days after the ruling center-right coalition was defeated in a key regional election.
The ministry also said that the committee had talked about the Opel application and that they've chosen to go ahead with the decision process.
When the preconditions were discussed, it became evident that GM encountered financial difficulties no earlier than the summer of 2008 caused by the financial crisis. [via autonews - sub. required]