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German lawmakers said to oppose Opel loans, argue GM is healthy enough on its own

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NewsFeeder    9

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Earnings/Financials, Opel

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General Motors isn't finished with Opel, but the German government would apparently like to be finished with General Motors. Michael Fuchs, a senior member in Angela Merkel's ruling CDU party, has reportedly declared "The discussion ... about financial aid for Opel must be ended once and for all."

This is the same Fuchs that a year ago didn't want to consider giving any money to GM before The General tried to sell Opel because he felt that the money might end up supporting GM's American operations. Now, his reasons against are because of the rise in GM's financial fortunes - trumpeting the paying off of loans (kind of), potential bank acquisitions and recent quarterly profits can have an adverse effect on loans. Germany has also been playing the role of Europe's financial guarantor as of late and is tired of being seen as a euro trough.

Opel CEO Nick Reilly says he's still waiting on word from Germany and a few other governments about aid for Opel. If GM doesn't get the $3 billion it seeks to restructure the company as it, we're guessing it will channel its inner David Copperfield and show a few countries how to make a factory and thousands of jobs disappear. The bell has rung on the next round in the saga.

[source: The Wall Street Journal]

German lawmakers said to oppose Opel loans, argue GM is healthy enough on its own originally appeared on Autoblog on Thu, 20 May 2010 18:20:00 EST. Please see our terms for use of feeds.

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RjION    59

Maybe it'll be less then 15 years before GM shutters Opel plants to sell Chevrolets in all of Europe VauxyChevys in the UK

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