Germany contemplating bailout for GM Europe’s Opel division
By Andrew C., 27 Aug, 2010. 0 Comments
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Like its American counterpart, the government of Germany is also contemplating a bailout program for GM Europe's Adam Opel division. Opel, a German-based brand, has appealed to both federal and state governments in Germany for loan guarantees. Because of GM's fast worsening global financial situation, accumulation of heavy losses, failing sales and bleeding cash, the absence of liquidity all contribute to threatening the feasibility of one of the
oldest carmakers in Germany. Hans Demant, Opel Managing Director, informed Reuters that government assistance would be spent on products and manufacturing plants in Germany and would remain only within Europe. Handelsblatt, the German business news daily, has also reported that government sources are saying that Hesse, a German state where Opel's Russelsheim headquarters are located, may offer some 500 million Euros in loan guarantees to the ailing carmaker.
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