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DATE News (chronologically)
06/10/10
automotive
German government rejects aid for GM's Opel
Germany today rejected General Motors’ request for aid from the federal government for its Opel unit, saying the U.S. automaker had enough funds to pull its subsidiary through.

The decision by Economy Minister Rainer Bruederle, came just days after Germany announced a plan to cut public spending and reduce the deficit, and denied GM of more than euro1.1 billion ($1.2 billion) in loan guarantees.

But Chancellor Angela Merkel insisted that “the last word on the future of Opel naturally has not been spoken.” She added that she would seek assistance from governors of states that host Opel sites in talks with them on Thursday.

A committee that examines aid requests from a fund for companies hit by the economic crisis failed to reach a decision on the case — putting the ruling in the hands of Bruederle, who turned it down.

“I am optimistic that the future of the subsidiary (Opel) can function without government aid,” Bruederle said, adding that it was GM’s responsibility to see to it that its subsidiary is swiftly restructured.

“I am convinced that GM has sufficient funds,” he said.

Opel CEO Nick Reilly expressed disappointment at the decision, but said in message to the Opel leadership obtained by the Associated Press that “Despite this decision, all of you can remain confident about our future.”

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