Tags: EU | Germany | GM | Opel

German Minister Rejects Govt Aid for GM's Opel

Wednesday, 09 Jun 2010 12:45 PM

Germany on Wednesday rejected General Motors Co.'s request for government aid for its Opel unit, saying the U.S. automaker had enough funds to pull its subsidiary through.

A committee that examines requests for aid from a fund for companies hit by the economic crisis failed to reach a decision on the case — putting the ruling in the hands of Economy Minister Rainer Bruederle.

GM is asking for loan guarantees from Germany totaling more than 1 billion euros ($1.2 billion).

"I am optimistic that the future of the subsidiary (Opel) can function without government aid," Bruedele said, adding that it was GM's responsibility to see to it that its subsidiary is swiftly restructured.

"I am convinced that GM has sufficient funds," he said.

Opel employs some 24,000 people in Germany, where it assembles Insignias, Astras and Corsas at four plants across the country.

Chancellor Angela Merkel was to meet Thursday with the leaders of the four states that host Opel plants.

Bruederle also sought to quell suggestions that Finance Minister Wolfgang Schaeuble may yet come up with funding for Opel through his own ministry, citing the government's new plan to slash spending and reduce the deficit.

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Germany on Wednesday rejected General Motors Co.'s request for government aid for its Opel unit, saying the U.S. automaker had enough funds to pull its subsidiary through.A committee that examines requests for aid from a fund for companies hit by the economic crisis failed...
EU,Germany,GM,Opel
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2010-45-09
Wednesday, 09 Jun 2010 12:45 PM
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