Report: GM, Opel agree to restructuring, clearing the way for German loans
 

Filed under: Europe, Government/Legal, GM, Earnings/Financials, Opel
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To the German government authorities who think General Motors is financially sound enough to pay for Opel's restructuring without loan-guarantee assistance, Opel CEO Nick Reilly says that's not the case. "You need to remember that GM is first of all founded by U.S. taxpayers," Reilly was quoted as saying. "Frankly, GM needs the money it has got."

Not surprisingly, GM has found an ally in Opel's German workers. The General has come to an agreement with the local labor heads who have agreed to forgo €1.26 billion ($1.586B U.S.) in earnings over the next four years. The deal requires that the money 'saved' be committed to developing Opel products, and if it isn't, then GM has to pay it back.

To help everyone keep track of the money and perhaps make financial assistance a more attractive option, Adam Opel AG will become a listed company. Germany hasn't given any indication of when it will declare its position on giving aid, but with 24,000 workers added to the plea and everyone unsure of how long GM can wait before it needs to take other measures, Germany will probably want to close this chapter out rather soon.

[Source: The Associated Press via Google]Report: GM, Opel agree to restructuring, clearing the way for German loans originally appeared on Autoblog on Mon, 24 May 2010 09:31:00 EST. Please see our terms for use of feeds.


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