Opel getting $2.7B injection of cash from GM
#1
03-03-2010, 02:50 PM
Opel getting $2.7B injection of cash from GM
Filed under: Government/Legal, GM, Opel
When General Motors decided it would keep Opel in the company's brand portfolio, it knew the price tag would be hefty. The Detroit News is reporting that price tag on The General's decision to retain its European arm is 1.9 billion euros ($2.7 billion in U.S. funds). And that's just GM's part of the bill. The automaker is also looking for 2.0 billion euros ($2.8 billion U.S.) in loans from European countries that have Opel facilities in their borders.
The General had reportedly been asking for up to 2.8 billion euros ($3.8 billion U.S.) in loans, but Germany pulled back on a promise to assist with the Opel restructuring after GM decided not to sell the brand to a group lead by Magna. To complete Opel's restructuring, GM plans to eliminate 30 percent of its European unit's structural costs and cut up to 10,000 jobs. Part of those structural costs includes the closure of several manufacturing facilities, some of which may reside in Germany.
In a prepared statement, GM CEO Ed Whitacere called the financial commitment to Opel "of vital importance for GM to demonstrate our commitment for our European operations," adding "we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall's customers, employees, business partners, unions, dealers and European governments."
[Source: The Detroit News | Image: Clemens Bilan/AFP/Getty]Opel getting $2.7B injection of cash from GM originally appeared on Autoblog on Wed, 03 Mar 2010 15:15:00 EST. Please see our terms for use of feeds.
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When General Motors decided it would keep Opel in the company's brand portfolio, it knew the price tag would be hefty. The Detroit News is reporting that price tag on The General's decision to retain its European arm is 1.9 billion euros ($2.7 billion in U.S. funds). And that's just GM's part of the bill. The automaker is also looking for 2.0 billion euros ($2.8 billion U.S.) in loans from European countries that have Opel facilities in their borders.
The General had reportedly been asking for up to 2.8 billion euros ($3.8 billion U.S.) in loans, but Germany pulled back on a promise to assist with the Opel restructuring after GM decided not to sell the brand to a group lead by Magna. To complete Opel's restructuring, GM plans to eliminate 30 percent of its European unit's structural costs and cut up to 10,000 jobs. Part of those structural costs includes the closure of several manufacturing facilities, some of which may reside in Germany.
In a prepared statement, GM CEO Ed Whitacere called the financial commitment to Opel "of vital importance for GM to demonstrate our commitment for our European operations," adding "we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall's customers, employees, business partners, unions, dealers and European governments."
[Source: The Detroit News | Image: Clemens Bilan/AFP/Getty]Opel getting $2.7B injection of cash from GM originally appeared on Autoblog on Wed, 03 Mar 2010 15:15:00 EST. Please see our terms for use of feeds.
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#2
03-03-2010, 03:24 PM
