GM Would Need $6.1 Billion to Keep Opel

In case General Motors wants to retain Opel, the former US bankrupt automaker would need around $6.1 billion to restructure the German unit, a report issued by financial advisory firm KPMG sent to the board of the company said. The estimate is close to GM's very own calculations which pointed to a $6.65 billion package needed for Opel: $4.65 billion would be used to keep Opel alive while the remaining $2 billion would repay the company's debts to the German government.

Reuters wrote today that GM's board members will meet once again on Wednesday to discuss the options. It appears the keeping the German unit is a major entry on today's agenda, even if officials will also discuss the possibility to sell Opel to one of the two interested bidders, Magna or RHJ.

Curiously, earlier reports indicated that General Motors plans to delay a decision on Opel until October, after the federal elections on September 27. This way, GM, who's still supporting RHJ, is willing to avoid affecting Angela Merkel's image as she repeatedly said that Magna submitted the best offer Opel could get.

Details are still in the rumor stage but RHJ last week revealed that it submitted a revised bid to General Motors. There are several revised terms, including government participation which, according to a company official, has been reduced in order to better comply with GM's demands.

"RHJ had already stated it was trying to optimize the financial aspect of its offer and it will continue to make every effort wherever possible to reduce the impact on German and European taxpayers without making any new cuts in employment, planned investments or anything else," an RHJ spokesman said.
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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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