Germany Angry with GM's Decision, Wants 1.5 Bn Euros Back

The not-so-shocking decision made by American carmaker GM to keep the German Opel unit in its portfolio upset the German government, who now says it expects GM to repay 1.5 billion euros in bridge financing provided by German state banks, Autonews reported.

"The government regrets the decision of the General Motors board to restructure Opel itself and to keep it in the group," Ulrich Wilhelm, a German government spokesman told the source.

GM tried to put to rest Germany's concerns in advance, as it promised to come up with a viable restructuring plan in due time. This after Opel workers agreed yesterday with Magna's drastic cost cutting measures.

"GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO.

“We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

GM's change of heart came after the American carmaker saw its business coming back on track in recent months. The biggest looser of the decision, Magna, tried to keep things as civil as possible.

"We understand that the Board concluded that it was in GM's best interests to retain Opel, which plays an important role within GM's global organization," Siegfried Wolf, Magna's co-CEO said in a release.