GM to go it alone on Opel, Vauxhall
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
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
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
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