Report: GM still aims to receive state aid for Opel restructuring

Article by Christian A., on August 27, 2010

General Motors Co. does a quick roundabout and takes back what GM's chairman, Ed Whitacre, told Germany's Muenchner Merkur newspaper about not needing state aid to help restructure GM's Opel segment.

Whitacre had told the German newspaper that he believes GM will not require money from the German federal government for Opel.

In no uncertain terms, Whitacre said, "If Mrs. Merkel doesn't want to give us anything then we will pay for it ourselves." After the publication of the interview, German Economy Minister Rainer Bruederle said that GM can cover the cost of restructuring by itself.

According to a report made through German public television station ZDF, Opel labor leader Klaus Franz called talk of GM not needing aid as "short-term propaganda."

He claims that Opel's works council would not negotiate with GM until it had laid out a plan for the company for up to 2014.

What makes the topic politically charged is because German politicians feel betrayed by GM's decision to keep control of Opel after having agreed last September to sell a majority stake to a consortium led by Canada's Magna International Inc. Chancellor Angela Merkel had given her full support for the deal, which provides Magna billions to restructure Opel.

Topics: gm, opel, germany

If you liked the article, share on:

Comments

Recommended

For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 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