General Motors pays back a loan from Germany
By Andrew C., 27 Aug, 2010. 0 Comments
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After backtracking on plans to sell Opel to Magna International Inc., General Motors Co. was able to pay back a loan from Germany and has even decided to lower the number of job cuts planned for Opel workers.
Instead of the 10,000 to 50,000 jobs believed to be cut from Opel's European workforce in its restructuring, Nick Reilly, Opel CEO, said the current plans are for only 9,000 to 9,500 jobs to be cut at Opel and Vauxhall.
GM'starget is to reduce production across Europe by 20% to 25%, the equivalent of three plants, in line with its 3.3 billion euros ($4.9 billion) plan. Earlier this month, GM decided to keep Opel instead of selling it off to Magna. Withdrawing from the deal means that aid from the German government will most likely not come in. In fact, GM is looking for funding from the European states where its plants are located for assistance to keep Opel in business.
Last Monday, Reilly said that GM will provide funds for Opel's restructuring but said that it would prove to be a difficult task since GM is itself going through a restructuring of U.S. operations and as well as in other regions. [via reuters]
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