GM to go it alone on Opel, Vauxhall

GM to go it alone on Opel, Vauxhall

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General Motors announced Wednesday it will pay for restructuring its Opel and Vauxhall operations itself, withdrawing applications for more than $2.2 billion in aid from European governments a week after Germany rejected the Detroit automaker's request.

The announcement ends what had become a soap opera for GM's European operations.

A year ago, as GM's U.S. operations entered bankruptcy, it looked likely that a majority stake in Opel would be sold to a group led by auto parts supplier Magna.

But that deal was shelved in November when GM's new board of directors got up to speed with the business. They said losing Opel would be a bad strategic decision for GM.

The automaker then sought aid from European countries.

England and Spain were on board with helping GM, but the automaker all along has faced resistance in Germany, where the company was seeking the bulk of the money because of its large footprint in that nation.

Last week, Germany's federal government rejected GM's request for 1.1 billion euros ($1.2 billion) in loan guarantees.

"I am convinced that GM has sufficient funds," Economy Minister Rainer Bruederle said at the time, according to the Associated Press.

Nick Reilly, president of GM Europe, told reporters that Opel's needs remain unchanged and that money for restructuring will come from GM.

GM had committed 1.9 billion euros ($2.3 billion) and will now have to come up with another 1.4 billion euros ($1.7 billion), which is about

400 million euros ($492 million) less than the aid being sought because GM doesn't believe it needs the same cushion that had been requested by the governments.
Reply to
Jim_Higgins
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GM welshed $3 billion earlier from the German government. Then welshed on the promises and poliicians right then took a bath.

In Germany, not only is GMs credit not worth a cold crap, neither is their trust in GM.

Until GM starts delivering on some of these broken promise, and something other than bullshit... GM can't really expect much from Euro governments.

Besides, GM has the US taxpayers wallet now...

Reply to
Canuck57

Once again our goofy friend Canucch57 is telling us the sky is falling LOL

Reply to
Mike Hunter

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