• May 20th 2010 at 6:20PM
  • 19
General Motors isn't finished with Opel, but the German government would apparently like to be finished with General Motors. Michael Fuchs, a senior member in Angela Merkel's ruling CDU party, has reportedly declared "The discussion ... about financial aid for Opel must be ended once and for all."

This is the same Fuchs that a year ago didn't want to consider giving any money to GM before The General tried to sell Opel because he felt that the money might end up supporting GM's American operations. Now, his reasons against are because of the rise in GM's financial fortunes – trumpeting the paying off of loans (kind of), potential bank acquisitions and recent quarterly profits can have an adverse effect on loans. Germany has also been playing the role of Europe's financial guarantor as of late and is tired of being seen as a euro trough.

Opel CEO Nick Reilly says he's still waiting on word from Germany and a few other governments about aid for Opel. If GM doesn't get the $3 billion it seeks to restructure the company as it, we're guessing it will channel its inner David Copperfield and show a few countries how to make a factory and thousands of jobs disappear. The bell has rung on the next round in the saga.

[Source: The Wall Street Journal]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 19 Comments
      • 5 Years Ago
      What about the German unions?
        • 5 Years Ago
        The German unions as well had it pretty good. Excellent vacation time, 35 hour week, pension at 65, fantastic pay. There isn't a union around the world especially the Greek unions that haven't been touched by this recession, but, haven't we all. Why should some of my taxes go to a company that is making a profit, "paying off loans" in record time, and has defaulted on billions of debt ( Moms and Pops as well as to the rich have seen their stock wiped out). This company has had its day at the public trough, it's time to let go.
      • 5 Years Ago
      It's GM's responsibility to run their business, not the Republic of Germany.
      • 5 Years Ago
      What's wrong with using German design facilities? You prefer they use their American or Korean ones?
        • 5 Years Ago
        Nothing wrong as long they don't ask for government money to finance it's operations.........
      • 5 Years Ago
      I used to work for GM. We could see the issues coming two years in advance. If GM wants some help, I say from here on out they are SOL. Find a cheaper place to manufacture, market, and sell your goods or close that line. They have dug this hole themselves. They made a profit here in the states for the first time in three years but the owner was living in china for those three years. They have gotten more help than they deserve. Do it yourself GM
        • 5 Years Ago
        I must admit that I have had enough of the business practice of company extortion. If you don't pay, I move.
        If every government got together and said enough, this practice must stop, this world would be a better place. Governments are subsidising rich union jobs on the backs of those who are making considerably less than their union "brethren".
        The new business moto should be "Sink or swim" or "If you can't do it, someone else will".
      • 5 Years Ago
      They know better than to sell off Opel. Some of the best designs from gm have come out of Opel. Yea remember what buicks an Saturns look like BEFORE they started rebadging opels. Before Saturn got killed off those were the best looking a well made by far since they came out. Who's next Holden????
      • 5 Years Ago
      If they want, we can shift all german production elsewhere...like the U.S. or Canada.
        • 5 Years Ago
        Yes so GM can build the cars in US with overpaid and low productive UAW workers.
        • 5 Years Ago
        Germany wanted GM to sell Opel. It would have been a horrendously bad business decision for them to do so. If Germany doesn't want to help with a bridge loan for restructuring Opel, they should probably move a lot of the production someplace else. Germany is one of the most expensive places to manufacture.
      • 5 Years Ago
      "If GM doesn't get the $3 billion it seeks to restructure the company..."

      Where is that number coming from!?
      • 5 Years Ago
      GM has no rights to ask for German financial support.
      On the other hands they should be allowed to restructure the business as they please, but without childish retaliations (like moving all the production out of Germany)

      They could have sold Opel if they though the business wasn't good enough, but they didn't.
      They had a choice, but they chose to disregard the offer and keep the brand, now they should take the consequences and behave professionally.

      Germany worries aren't all unjustified after all, Opel is supplying the entire Buick line up. They are using the German design facilities but they are building the cars in US and even China.

      GM should be able to restructure Opel like they did for the American division.
      If Opel CEO is not up for the challenge, he should be fired.

        • 5 Years Ago
        I tried to read between the lines here and look where it got me! ;)
        • 5 Years Ago
        If Germany does not want to loan money to GM, that is fine. But it would behoove GM to move all design and production out of Germany, for money savings alone. That is not childish, that is prudent business. There are plenty EU countries close enough to Germany to keep transportation costs down, and those countries would welcome the business.

        If Germany wants to keep production in Germany, they can pay.
        • 5 Years Ago
        @ Miles

        What I am saying is that by using the German design facilities, the US division is saving money.
        Now, if the German government allows any kind of financial help to Opel they will be indirectly financing the US division too.

        I am not suggesting they build more cars in Germany, learn how to read between the lines.
      HotRodzNKustoms
      • 5 Years Ago
      From a business point of view if they believe GM to be healthy enough then I'd loan them the money. There is no safer borrower than a healthy company fresh out of bankruptcy. (Ok there is but you get the point)
        • 5 Years Ago
        @HotRodzNKustoms
        A lot of Europe probably doesn't need a financial risk right now.
    • Load More Comments
    Share This Photo X