Workers Don't Agree with GM Controlled Opel

Even if General Motors plans to keep Opel and restructure the brand on its own, the former bankrupt US automaker might encounter more difficulties, other than the money needed to keep the company alive. According to a report by Reuters, Opel's workers would not accept a GM-controlled company and, in case this happens, the employees are not willing to help the American manufacturer cut costs within the German unit.

"The employees want to make sustainable contributions but not if we should return to 100 percent control under GM," Klaus Franz, Opel's senior labor leader, was quoted as saying by the aforementioned source.

Rumors regarding GM's plans to keep Opel and restructure the brand using its own cash surfaced two weeks ago just after the American company delayed a decision on the German unit. At that time, German officials asked for the US officials to intervene and help GM pick a buyer.

A new report issued today by the Wall Street Journal revealed tat GM might be raising funds to keep Opel in its own yard and thus cancel a potential sale to any of the two interested parties, Magna or RHJ.

"It's not enough with just 1.5 billion or 2 billion euros. In order to pay back the bridge loan, GM needs to come up with $2 billion, and then there would not be a single cent left to invest in new products or restructuring the 25 to 30 percent of over capacity," Franz said. "To properly position this company you need 5 to 6 billion euros in the next couple of years."