German government offering aid to Opel if Magna will be the buyer
By Andrew C., 27 Aug, 2010. 0 Comments
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Magna International's future as the new owner of Opel/Vauxhall is looking brighter with Germany's statement that it will provide 4.5 billion euros ($6.35 billion) in state aid if General Motors chooses Magna. Germany's offer means that the federal government and German states with Opel plants split the initial aid bill without waiting for other European countries that have GM sites to chip in.
Deputy Economy Minister Jochen Homann said that it could later agree with other European countries on how the costs are to be shared.
Homann, who heads the government's Opel task force, said that other countries such as Britain, Spain, Poland and Belgium could contribute once the degree of their involvement in GM's European operations becomes clear. When asked if the offer is extended to the other bidder, RHJ International, Homann pointedly said, "The question doesn't arise, because the German government has a preference for Magna's improved offer."
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