Opel Goes Down, Screams for Help

In case you thought that US carmakers are the only automotive companies affected by the global recession, you were entirely wrong because consequences of the crisis can also be found in Europe where several manufacturers already cut jobs or lowered local productions. But more importantly, GM's European brand Opel has asked the German government to provide a $1 billion funding package that could help it minimize loses and go through the recession a bit smoother.

Germany's chancellor Angela Merkel said the government is willing to aid the automotive industry but all funds must remain inside the country and Opel must mainly focus on improving its local business. “This is a special case. This is the basis on which we are talking,” Angela Merkel stated.

Opel agreed with requirements made by the German government and acknowledged that any potential loan would be exclusively addressed to local facilities. "The funds and guarantees that may be required would be invested in product development and manufacturing sites in Germany and would by no means be spent outside of Europe," Opel said in a statement according to Wheels24.

GM's German company Opel saw its sales going down by approximately 14 percent in Western Europe between January and October 2008 while worldwide sales decreased by 6 percent.

On the other hand, General Motors is experiencing the toughest period in its history, with US sales dramatically reduced and government assistance almost a must in order to ensure they do not run out of cash. GM's representatives and the other two members of Detroit 3, namely Ford and Chrysler, urged the United States Congress to approve a $25 billion loan package that could help them revamp sales. However, members of the Congress said the “Big Three” will only receive the funds only if they agree to comply with a few requirements, such as to concentrate exclusively on fuel-efficient engines that could revamp their sales in a shorter time.