Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

GM to triple financial boost to Opel

Share this article

GM to triple financial boost to Opel
Photo: DPA
09:10 CET+01:00
US carmaker General Motors will pour substantially more money into its struggling German unit Opel than previously planned, the company announced on Tuesday.

In a statement issued from its headquarters in Rüsselsheim near Frankfurt, Opel said its parent would more than triple the amount it was spending from €600 million to €1.9 billion.

It was therefore planning also to cut the amount of money it would seek from European governments via loan guarantees from €2.7 billion to less than €2 billion.

The announcement came in response to pressure from European countries in which Opel and its sister firm Vauxhall have plants.

The amount needed in total to restructure the company and guarantee its future had previously been put at €3.3 billion – a figure now revised up to €3.7 billion.

"An additional €415 million had been requested by the respective European governments to offset the potential impact of adverse market developments," Opel said in its statement.

Newspaper reports have previously said GM was seeking €1.5 billion from the German government, with the rest coming from the other European countries where Opel have operations.

Less than a month ago, Opel boss Nick Reilly forecast the loss of 8,300 jobs from the struggling carmaker from a total of around 50,000.

But fewer than half the cuts, or 3,911, would take place in Germany, Reilly said.

GM had initially decided to sell Opel but changed its mind after its own rescue by the US government, and has decided to turn the European unit around itself.

Europe's Leading Job Site for
International Talent - The Local Jobs
Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

QUIZ: Which influential Icelander are you?

Iceland may have a population of just over 330,000 people (all with equally unpronounceable names) but that doesn't stop it churning out a stream of globally-renowned people. Take our quiz to discover your Icelandic spirit animal.