Opel/Vauxhall Gets 1.9 Billion Euro from GM

Under its viability plan, Opel/Vauxhall estimated that it needs 3.3 billion Euro. Though at first General Motors said it will only contribute with 600 million Euro, the Geneva Auto Show brings us some good news: GM will contribute with a substantial 1.9 billion Euro funding package.

This means that the requested total of loan guarantees from European governments will decline from 2.7 billion Euros to under 2 billion Euros. The announcement removes any potential liquidity risks during the restructuring this year.

“GM’s 1.9 billion Euros commitment is the right course of action for Opel/Vauxhall and should clearly signal our determination to fix our business,” said Nick Reilly. “Our call for the additional funding was approved by GM’s senior management and supported by the GM Board of Directors. Meanwhile, we have shared this decision with the European Commission as well as the national and state governments involved. We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about government guarantees to cover the remaining gap.”

“We greatly value the much increased support from GM, particularly given the high-priority demands on their liquidity, not least the restructuring of GM’s North American operations and coping with a continuously weak market in North America”, Reilly added.

“It is of vital importance for GM to demonstrate our commitment for our European operations,” said Ed Whitacre, GM Chairman and CEO. “Beyond the purely financial aspects, we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall’s customers, employees, business partners, unions, dealers and European governments.”