State Governments to Discuss Opel Aid

General Motors has already stated that it needs 2.7 billion Euros to restructure Opel but governments across Europe, including Germany, are yet to make a decision on the matter. However, according to just-auto.com, Germany's federal and state governments are expected to hold a meeting to discuss the state aid and determine the best way to help the local carmaker.

According to Opel's "Plan for the Future", the German brand will invest up to 11 billion Euros in the next five years, with several models to be introduced in the years to come. The refreshed product range also includes an extended-range electric vehicle, in addition to the Ampera plus pure battery-electric vehicles in smaller-size segments.

“Opel/Vauxhall has a clear vision: to be a leading European manufacturer of high quality, desirable automotive products, based on German engineering, driven by a united team of professionals and respected around the world. This vision will be realized by offering an exciting and expanded product portfolio based on a strategic push into alternative propulsion technology,” said Opel/Vauxhall CEO Nick Reilly.

However, in order for this plan to work, Opel intends to cut jobs at several plants across Europe, including those in Germany. The company will eliminate 300 jobs at Eisenach, 862 at Ruesselsheim and another 300 at Kaiserslautern.

“We will build a European company that is profitable, self-sustainable and fit for the long-term,” Reilly said. “This keeps a manufacturing base in Europe. It is good for Europe, good for our employees and good for our customers. We therefore trust that the plan will be supported by our employees.”