Report: GM must raise share of costs to receive state aid for Opel
By Andrew C., 26 Aug, 2010. 0 Comments
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German Economy Minister Rainer Bruederle confirmed that there are demands for General Motors Co. to contribute considerably more towards the restructuring costs for Opel, GM's European division. A report by Germany's Handelsblatt newspaper last Monday cited German government sources who said that before Berlin agrees to provide state aid, GM would have to increase its share of the 3.3 billion-euro ($4.5 billion) reorganization costs for Opel. In an effort to make Opel profitable, GM is asking European countries with Opel plants to contribute 2.7 billion euros ($3.7 billion) of aid. GM is asking Germany for 1.5 billion euros ($2.05 billion) in loans or loan guarantees. The sources said further that there are demands for GM to fund at least half (1.65 billion euros or $2.25 billion). GM has so far, committed to pay only 600 million ($820.5 million). [via autonews]
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