NINETY EIGHT REGENCY

Opel gets 300 million euros in aid from Spain

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Opel gets 300 million euros in aid from Spain

June 7, 2010 15:46 CET

MADRID (Reuters) -- Spain's central government and the Aragon regional government will provide General Motors Co.'s European unit Opel with 300 million euros ($358.2 million) in aid, the Aragon government said on Monday.

"Between the central government and the autonomous region of Aragon, we have put a limit (on aid) of about 300 million euros," the government of northeastern region Aragon said on its Web site.

GM has asked for aid from European governments to help fund a costly turnaround plan at Opel that would shrink production capacity by about 20 percent

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100607/ANE/306079918/1193#ixzz0qBRWmdwX

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OPEL LANDS $358M LOAN FROM SPAIN

By Drew Johnson

General Motors’ Opel division is still waiting for the German government to make a decision on federal aid for the ailing automaker but, in the meantime, Spain’s central government has pledged $358.2 million to support the German car maker.

Following General Motors’ decision to keep its German Opel brands, several European governments suspended plans to finance the automakers turnaround plans. The company has essentially been in limbo ever since, but Spain has finally taken the lead on the subject.

“Between the central government and the autonomous region of Aragon, we have put a limit (on aid) of about 300 million euros,” the government of northeastern region Aragon said on its website.

Although helpful, the $358.2 million loan is just a fraction of what Opel needs to restructure. Opel recently secured a new labor agreement that was believed to be the foundation for government loans, but it remains to be seen if Spain’s action will prompt other European governments to follow suit.

link:

http://www.leftlanenews.com/opel-lands-358m-loan-from-spain.html

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