General Motors’ Opel division has announced it is seeking billions in aid from the German government as the U.S.’ largest automaker continues to teeter on the verge of bankruptcy. The announcement comes on the heels of the news that one of GM’s other European brands, Saab , has filed for reorganization in a Swedish court.
According to Automotive News Europe, Opel is looking to secure $3.3 billion euros ($4.15 billion) in financing, with the majority of that sum coming from the German government. Under Opel’s plan, it would receive 2.6 billion euros from the German government and make up the remaining 700 million euros through further job cuts.
Opel was previously seeking between 1 billion and 2 billion euros from the German government, but GM’s worsening financial situation means the German automaker needs more outside help.
“On the basis of these changed conditions, we assume that Opel will need more than the 1.8 billion euros in guarantees originally discussed in Europe,” Opel’s finance chief said Marco Molinari told Reuters.
GM hasn’t announced any plans to sell its Opel brand.
