Opel Generates Enough Money to Survive for 4 Months

General Motors' German unit Opel is currently generating enough money to remain in business during the next four months, a report issued by local newspaper Bild Zeitung claims citing sources close to Opel. Basically, the German car manufacturer managed to slightly revamp its financial situation with the help of the newly-launch Insignia model, a car which is said to bring pretty high revenues in most markets around the world.

Opel said in February that it needs 3.3 billion euros to get through the crisis, while the German government repeatedly insisted the company has to issue a strong viability plan to demonstrate the company's ability to stay in business.

"The discussion with governments is being driven by the exceptionally weak economic situation that has seriously eroded consumer demand for vehicles and shut-out the availability of credit for financing operations," said in February GM Europe President Carl-Peter Forster.

"We’re moving to restructure our business with as minimal an impact on jobs as possible, but the reality is that we’re in an exceptional economic situation and the issue of plant closings must be considered."

The German state expressed its support for ailing automakers with every single occasion, saying that the country will approve the funding packages as soon as they demonstrate that they can become financially-viable companies.

“We will support companies like Opel if our help can secure a good future for these businesses and not just go up in smoke without taking any effect," German Chancellor Angela Merkel was quoted as saying.

"Before we decide (on aid), we must know important decisions in the United States; for example, how things proceed with Opel's parent company General Motors, what independence General Motors can give Opel, what happens with Opel patents."