Germany expected to provide a final response on Opel request for aid this month

Article by Christian A., on August 26, 2010

By the end of May, the German government is expected to provide a final response on Opel/Vauxhall's request for aid, which is initially set at 1.5 billion euros ($2 billion). Last Friday, Opel CEO Nick Reilly was on the sidelines of a meeting hosted by the American Chamber of Commerce.

He told reporters that there are signs that Germany will give an answer by the end of the month. Opel/Vauxhall, General Motors Co.'s European arm, has secured aid pledges from other European countries with Opel plants including the UK and Spain.

However, Opel would require a lower amount than it first sought from Germany, where the unit is based and where half of its 48,000-workforce in Europe is located.

Reilly added that after having told Germany how much amount in guarantees it expects to get from other countries, he believes that the amount would be "a little less than the 1.5 billion."

Last Friday, the German Economy Ministry said that Opel aid would be discussed in a meeting next week that would be attended by the committee responsible for state guarantees.

A ministry spokeswoman said that the steering committee and council would have to discuss the aid before a decision is reached.

Last year, European governments and workers got upset with GM when it junked plans to sell Opel and UK sister brand Vauxhall and requested countries with Opel/Vauxhall plants to contribute to the cost of returning the carmaker to profit. [via autonews - sub. required]

Topics: opel, germany

If you liked the article, share on:

Comments

Recommended

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries