Right Or Wrong? GM Still Begging For Cash For Opel After Profit

General Motors Co. should restructure its Opel brand without the help of state aid because the parent firm's first-quarter results suggest the U.S. automaker has enough financial muscle to do so, an influential German lawmaker said Tuesday.

The deputy head of the parliamentary group of Germany's ruling Christian Democrat party, Michael Fuchs said: "The discussion ... about financial aid for Opel must be ended once and for all." The decision on whether or not to grant state aid to Opel has been dragging on for several months in Germany.

Ten months after emerging from bankruptcy protection, GM Monday reported its first quarterly profit in three years, driven mainly by slashed costs and improving vehicle sales in the U.S. and Asia. GM earned $863 million in the first three months of 2010, compared with a $6 billion loss a year earlier. Revenue rose 40% to $31.5 billion, and the company generated $1 billion in cash.

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uaw_lax - 5/21/2010 10:15:40 AM

-1 Boost

They are just looking for cheaper credit from the government wich is smarter than borrowing from a source with a higher interest rate all automakers do this so they can keep a good supply of liquid cash on hand.

Agent009 - 5/21/2010 11:17:19 AM

-1 Boost

Because they want to invest as little as possible in correcting their mistakes?

Steve - 5/21/2010 2:01:30 PM

+3 Boost

Because they can. The pig that feeds at the trough, returns to the trough.

AdmiralT20 - 5/21/2010 12:48:51 PM

+3 Boost

When I saw the article and the morphed GM logo I knew it had the hand writing of Agent009.
Agent009 aka Agentanti-Obama.
Do we need the drama Agentant-Obama I mean Agent009? Do you need to tie GM to your political ideology?

rom64 - 5/21/2010 2:56:54 PM

+4 Boost

Well hey, at least Germany's got their s*&t in order and aren't blindly giving away a money to GM especially after the OPEL-MAGNA fiasco.

So no, GM should stop looking for tax-payer money. If they need any, they should start at the CEO's and CFO's.

Beggars can't be choosers.