Home > auto industry, business, economy, germany > Germany to Study GM’s Opel Plan Before Aid Pledge

Germany to Study GM’s Opel Plan Before Aid Pledge

Chancellor Angela Merkel said the German government will study a business plan by General Motors Corp.’s Opel unit before taking any decision on possible aid for the carmaker.

“The German government’s key priority now is to analyze this concept,” Merkel said at a press conference following a summit of European Union leaders in Brussels today.

GM, surviving on $13.4 billion in U.S. aid and seeking as much as $16.6 billion more, may give up as much as 50 percent of Opel as it seeks 3.3 billion euros ($4.2 billion) in European state aid to save Opel. Merkel’s government will receive details on GM Europe’s business rescue plan tomorrow.

Merkel, who’s seeking re-election in Germany’s Sept. 27 national vote, has pledged to make job preservation her main priority as the country’s economy battles the worst recession since World War II. Adam Opel GmbH, which has been making cars in Germany since 1899, employs 26,000 staff in Europe’s largest economy.

[ Continue reading the original article at Bloomberg ]

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