GM Stops The Begging And Ponies Up The Cash For Opel To Move On

General Motors’ Opel/Vauxhall unit, expressing frustration with the slow pace of government decision making, said Wednesday it was no longer seeking aid from European countries and would finance a five-year, new-product drive with help from the parent company.

Germany’s federal government last week turned down Opel’s request for €1.1 billion, or $1.4 billion, in loan guarantees, amid a drive to cut government spending in response to Europe’s debt crisis.

Opel’s plans call for an investment of €11 billion over five years in developing new products and for restructuring. Though the company might still have won backing from German states that have Opel factories, as well as Spain and Britain, the company said it could not afford to spend months in negotiations.



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Steve - 6/17/2010 11:02:48 AM

+2 Boost

Well, ya can't get pissed at them fro trying to get a free handout, especially considering so many others before them have. Kudos to the German government for not throwing away money, and this even makes Open/Vauxhall look a little better, that they are going to "do their best." Maybe. With the money coming from GM, it may be GM that asks for, and gets, more handouts in the future.

LexSucks - 6/17/2010 1:30:54 PM

+1 Boost

If GM is "Obama motors" as some folks here ignorantly state. Then why don't they get the money from the U.S? GM is still a mess and should have been seriously downsized years ago.

veyron1001 - 6/18/2010 12:35:49 PM

+1 Boost

Uh well because the Opel brand isnt made in the US.