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Austria, Poland to Grant Opel Financial Aid

Poland and Austria are ready to provide financial support to Opel, Germany Economy Minister Karl-Theodor zu Guttenberg said on Friday. Furthermore, the two countries have already made written commitments in this matter, assuring Germany that they would approve state loans to the ailing carmaker currently in takeover talks with Magna International.

The involved parties also made significant progress in talks with the United Kingdom and Spain, Guttenberg told Reuters, as two countries initially opposed Magna's bid due to the proposed job cuts. The German official also gave assurance that negotiations on the sale are still under way and, even if the deal was expected to be agreed last week, there is no doubt this will happen in the near future.

"We still have to clear up a few things with the European Commission,"
Guttenberg told a news conference. "I think all players in the deal are very relaxed about this."

Guttenberg said the Opel sale has been delayed a few days due to a number of issues still unsolved between the involved parties. The deal is expected to get the go-ahead this week, he said, but not all details on the financing to be provided by countries hosting Opel factories have been settled yet.

"It is not seen as a problem by the companies if it's delayed by a couple of days,"
Guttenberg said.

According to the terms of the deal, Canadian - Austrian partsmaker Magna International will take control of a 55 percent stake in Opel while General Motors will continue to hold 35 percent. Opel's employees will receive the remaining 10 percent.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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