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GM gives Opel $930M boost

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GM gives Opel $930M boost

Robert Snell / The Detroit News

General Motors Co. has provided its struggling German carmaker Adam Opel GmbH with an additional $930 million in temporary aid until more permanent financing can be found, the automaker disclosed today in a regulatory filing.

That brings to $1.83 billion the total financing GM has provided Opel, which is undergoing a restructuring.

GM provided the most recent aid to Opel and its subsidiaries on Jan. 4, according to the filing with the U.S. Securities and Exchange Commission.

GM's board of directors decided in November against selling a majority stake in Opel, and the German carmaker is seeking long-term aid from European governments to fund a major restructuring that will cost almost $5 billion.

The $930 million includes "the acceleration of certain payments owed under engineering services agreements," GM said in the filing.

GM Europe President Nick Reilly told reporters this week at the North American International Auto Show that the restructuring plan could be in place later this month.

GM has said it expects to cut around 9,000 jobs at Opel, or nearly 20 percent of the ailing German carmaker's work force, as part of an approximately $5 billion restructuring.

Reilly also said he expects to announce a series of management changes today.

GM also disclosed compensation for director Steve Girsky, who was named last month as a senior advisor to Chairman and CEO Edward Whitacre Jr.

Girsky will receive, on top of the $200,000 a year each board member gets, a monthly grant of salary stock valued at $75,000 -- or $900,000 a year -- plus reimbursements of his living expenses in Detroit and travel expenses to and from Detroit.

Girsky was appointed to GM's board by the United Auto Workers to represent the union's 17.5 percent stake in GM through its retiree health care trust. The longtime auto analyst briefly served as an adviser to former GM Chairman and CEO Rick Wagoner.



Read more: http://www.detroitnews.com/article/20100115/AUTO01/1150418/1148/GM-gives-Opel-$930M-boost#ixzz0cjJaC9GR

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