Opel Goes Down, Screams for Help
Germany's chancellor Angela Merkel said the government is willing to aid the automotive industry but all funds must remain inside the country and Opel must mainly focus on improving its local business. “This is a special case. This is the basis on which we are talking,” Angela Merkel stated.
Opel agreed with requirements made by the German government and acknowledged that any potential loan would be exclusively addressed to local facilities. "The funds and guarantees that may be required would be invested in product development and manufacturing sites in Germany and would by no means be spent outside of Europe," Opel said in a statement according to Wheels24.
GM's German company Opel saw its sales going down by approximately 14 percent in Western Europe between January and October 2008 while worldwide sales decreased by 6 percent.
On the other hand, General Motors is experiencing the toughest period in its history, with US sales dramatically reduced and government assistance almost a must in order to ensure they do not run out of cash. GM's representatives and the other two members of Detroit 3, namely Ford and Chrysler, urged the United States Congress to approve a $25 billion loan package that could help them revamp sales. However, members of the Congress said the “Big Three” will only receive the funds only if they agree to comply with a few requirements, such as to concentrate exclusively on fuel-efficient engines that could revamp their sales in a shorter time.