GM Still Far from German Money

General Motors is now struggling to raise the needed money to start restructuring Opel but the company is far from getting support from Germany, whose officials felt outraged with its decision to keep the brand. While some government officials released their point of view on the matter some days ago and revealed that Germany might reject GM's request for funds, German Economy Minister Rainer Bruederle stepped in and emphasized that GM must work hard to get the money.

"GM Chairman (Ed) Whitacre has said that his company can handle Opel, so this means that agreements and pledges that were based on other concepts are moot," Bruederle was quoted as saying by Reuters.

“Opel has the same right as any other German company to apply for state aid. We have a duty to examine this thoroughly. The outcome is open and there is no entitlement to have it approved,” he added.

On the other hand, Finance Minister Wolfgang Schaeuble said that Germany must still review the loan request because it would be unfair especially for Opel's plants and employees to reject a proposal from the very beginning.

"We simply can't say that for Magna we would have done all we could because we feel a responsibility toward the people and the plants, but then turn around and rule that out for another owner," Schaeuble said.

General Motors announced earlier this month that it would retain possession of Opel and start restructuring using its own resources. However, the US-based manufacturer is seeking support from various countries across Europe that are hosting Opel factories and it is believed that GM wants to cut around 10,000 jobs.