Opel asks German Govt for cash guarantee

[killerrd2]

With General Motors’ future uncertain here in the U.S., the automaker’s foreign arms are getting a little nervous about what might become of them. GM’s German Opel division is taking matters into its own hands, with Opel’s Managing Director Hans Demant asking the German government for guarantees to ensure Opel’s survival.

Because of the problems GM is currently facing in the U.S., it’s easy to forget just how global GM’s operations are. But Opel is feeling the economic pinch just as much as any automaker, with sales seeing a significant drop-off.

“We want to assure Opel’s future in Europe as well as our jobs,” Opel labor leader Klaus Franz told Automotive News. “The aim of the current talks is to prepare additional backing for loans because parent company General Motors’ global financial situation has deteriorated.”

According to Germany’s Handelsblatt news paper, the German state of Hesse – which happens to be the home for Opel’s headquarters – is considering a $634 million aid package to see Opel through these tough times. No word on a timeframe for the German government’s decision, but with GM running out of cash at an alarming rate, we suspect a ruling will be coming sooner rather than later.

http://www.leftlanenews.com/gms-opel...uarantees.html

Interesting...

[killerrd2]

OPEL wins EU car of the year and no one cares if OPEL is seeking help outside of GM (the German Govt) to stay alive if GM can't?

Maybe the title is just too boring!

[mikmak]

I think its already been posted,


ZING

[Tstag]

The EU is allegedly backing a much bigger financial package for Opel. BUT Opel have been told that to qualify not a cent must go to the US parent company. In addition any money GM took out of Opel must be repaid in full. I believe the Germans think GM owe Opel 2 billion dollars.

The thinking is that the German Gov't is planning a takeover by the back door. In essence they will loan Opel billions of dollars but they will want Opel to provide securities. Then they will insist on getting the 2 billion dollars back. If GM is unable to pay up the Germans government will seize control of Opel and probably flog it to BMW or Daimler who both need to reduce their co2 emmisions across their range of cars. It's unusual for the EU to back state aid, it's even against their own rules. But the EU apparantly wants to "protect strong companies" like Opel (by making them European). So you see the political pieces are being manouvered into position now....

[aldw]

Originally Posted by Tstag

The EU is allegedly backing a much bigger financial package for Opel. BUT Opel have been told that to qualify not a cent must go to the US parent company. In addition any money GM took out of Opel must be repaid in full. I believe the Germans think GM owe Opel 2 billion dollars.

The thinking is that the German Gov't is planning a takeover by the back door. In essence they will loan Opel billions of dollars but they will want Opel to provide securities. Then they will insist on getting the 2 billion dollars back. If GM is unable to pay up the Germans government will seize control of Opel and probably flog it to BMW or Daimler who both need to reduce their co2 emmisions across their range of cars. It's unusual for the EU to back state aid, it's even against their own rules. But the EU apparantly wants to "protect strong companies" like Opel (by making them European). So you see the political pieces are being manouvered into position now....

I'd rather see GM do a scorched earth plan than let the EU do a hostile takeover.

[Major_Tom]

Originally Posted by aldw

I'd rather see GM do a scorched earth plan than let the EU do a hostile takeover.

Maybe so, but beggers can't be choosers. Basically Opel has two options. Either sink with the rest of the GM or survive under new ownership with no ties to GM.

[Buick Riviera]

Originally Posted by Major_Tom

Maybe so, but beggers can't be choosers. Basically Opel has two options. Either sink with the rest of the GM or survive under new ownership with no ties to GM.

Gm is not going to sink I can tell you that.

[Major_Tom]

Originally Posted by Buick Riviera

Gm is not going to sink I can tell you that.

Let's see. GM share has plunged by some 90% this year only and the global auto indsutry is in crisis including companies that are run much better than GM. If you seriously think that there will be GM around one year from now, I've got a bridge to sell to you.