Basically, if General Motors sees itself forced to seek protection from creditors, Opel would use its available liquidity to pay wages and other debts as well as to make investments in certain assets, Autonews informed today quoting the spokesman's statement.
General Motors is facing a 60-day deadline to revise its restructuring plan submitted to the United States government on February 17. The company must decide by the end of May whether it is capable to remain in business using government funds or file for Chapter 11 that would guarantee its survival under state protection.
A recent report claimed that General Motors has agreed to cease some patents to Opel in exchange for the German brand to drop financial requirements for the American automaker, Autonews added. However, the two sides refused to comment, which is usually the first sign that there might be some truth behind these words.
Opel previously said it needs up to 3.3 billion euros ($4.34 billion) from European countries to get through the crisis without the need for aggressive cost-cutting schedules such as job layoffs and production cuts. The German government has asked for a detailed survival plan that would ensure the company's viability and, after a long series of negotiations, the loan package is still on hold.
"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."
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