GM Will Pay Back German Opel Loan

Now that General Motors decided to keep Opel, the German government is screaming loud and clear that it wants its money back. Germany previously loaned 1.5 billion euro to General Motors to keep Opel alive until the company is sold to another investor.

According to German Economy Minister Rainer Bruederle, the US-based manufacturer will return the loan but rated the company's decision to retain possession of the German brand as "totally unacceptable".

"We will the get the taxpayer's money back," Bruederle told reporters in Berlin according to a report by Reuters.

Additionally, GM Europe expects countries across Europe that are hosting Opel plants to provide financial support for the restructuring process which is about to begin under its ownership.

"We are not in a position to detail the financing publicly at this point," a GM Europe spokeswoman said on Tuesday. "The plan is to secure the bulk of financing from European loan guarantees," she said. "The restructuring of Opel for long-term sustainability requires involvment and support from all stakeholders including employees and governments."

The UK government earlier today expressed its support for GM's decision and said it is willing to provide financial support to General Motors and maintain Vauxhall's operations untouched.

"We have noted GM's announcement today and want to work closely with GM to understand their plan for the business and what it means for the UK," a Department for Business spokesman said. "We have always said that if the right long-term, sustainable solution is identified, then the government would be willing to provide funding to this."