Opel getting $2.7B injection of cash from GM
The General had reportedly been asking for up to 2.8 billion euros ($3.8 billion U.S.) in loans, but Germany pulled back on a promise to assist with the Opel restructuring after GM decided not to sell the brand to a group lead by Magna. To complete Opel's restructuring, GM plans to eliminate 30 percent of its European unit's structural costs and cut up to 10,000 jobs. Part of those structural costs includes the closure of several manufacturing facilities, some of which may reside in Germany.
In a prepared statement, GM CEO Ed Whitacere called the financial commitment to Opel "of vital importance for GM to demonstrate our commitment for our European operations," adding "we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall's customers, employees, business partners, unions, dealers and European governments."
[Source: The Detroit News | Image: Clemens Bilan/AFP/Getty]
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