GM: Opel Shake-Up Won't Work Without State Aid
text size: A- A+
"General Motors made one point very clear, 100 percent clear, the restructuring plan could only be achieved when European member states with Opel plants give some financial help," said Verheugen according to a report by Reuters.
"So the plan works only with state aid. The idea that General Motors can finance this on its own was not shared by General Motors, this possibility does unfortunately not exist," he said.
General Motors paid the Opel loan it received in June and is now concentrating on the terms of the restructuring process. The company is expected to hold talks with unions on Wednesday and meet with EU representatives by the end of the week. Additionally, EU officials will meet on December 4 to discuss a potential loan package for Opel.
GM announced earlier this month that it will scrap plans to sell Opel to Magna International, the Canadian - Austrian partsmaker that has been often referred to as the next owner of the German brand. Under the terms of the deal, Magna and its Russian partner, Sberbank, could take control of a 55 percent stake in Opel while the American company retained possession of a 35 percent share.
UP NEXT: Beijing Auto Interested in Saab Assets Tip: navigate with ← and →
OPEL cars we've tested
all testdrives →