GM Doesn't Qualify for German State Aid

General Motors is not eligible to receive state aid under the Germany Fund programme that provides financial backing to companies trying to deal with the crisis. At least, this is that a German government official said, describing a potential scenario in which GM would receive money from the state as a "farce".

"One must give no support to GM if the fund's criteria are taken seriously," Justus Haucap, head of the Monopolies Commission, said according to Bloomberg. "Opel's problems have nothing to do with the financial crisis."

As a reply, Stefan Weinmann, a spokesman at the GM unit's headquarters in Ruesselsheim, said that it's way too early to talk about state aid in the Opel case because negotiations with the German government are only in the very early stage. A decision is to be made at a later date, with EU officials planning to meet on December 4 to discuss GM state aid.

"Let's wait and see how the talks proceed," explained according to the aforementioned source.

Under the terms of the Opel restructuring plan, General Motors would cut around 9,000 jobs, Germany being the most affected countries. Germany is currently holding approximately a half of Opel's European workforce - 50,000 employees - and General Motors is targeting Opel's homeland for 50 to 60 percent of the cuts.

Opel top labor leader Klaus Franz said GM wants to cut around 2,500 jobs at Opel's HQ in Ruesselsheim, Germany. This includes 1,300 jobs in administration, 862 in production plus 548 in engineering and development center. The Bochum factory will be affected as well, with 1,799 jobs to be eliminated. Additionally, the Eisenach and Kaiserslautern plants in Germany will lose 300 jobs each.