General Motors’ European unit, Opel, has officially agreed to a restructuring plan – but the automaker says it needs about $4.18 billion in state aid from across Europe in the form of credit guarantees or loans. As part of the restructuring plan, GM would spin off Opel but the Detroit automaker would still remain connected to its European counterpart.
The move would allow Opel to be open to outside investment. GM Europe president Carl-Peter Forster told the media that the restructuring would be aimed at keeping jobs and factories, though the automaker is in talks with Daimler to sell its Eisenach, Germany, plant.
Opel has been a part of GM for more than 80 years, a fact not lost on the thousands of protesters at the automaker’s Russelsheim, Germany, headquarters yesterday.
The restructuring agreement would see Opel as a separate unit from Detroit-based GM, though strong links would remain between the two automakers, unlike GM’s plan to set Saab on the road to independence.
Opel’s supervisory board met earlier today and agreed on the restructuring plan. GM would not look to close any of Opel’s plants, but job cuts across the board would be likely.
Though German Chancellor Angela Merkel has expressed support for Opel – especially its 25,000 direct employees in Germany – the automaker has been subject to the same criticisms the Swedish government has levied on fellow GM unit Saab. GM is seeking to spin off both Saab and Opel (though Saab would become fully independent), but the governments have not been satisfied with GM’s plans.
“All other options have to be exhausted,” Economy Minister Karl-Theodor zu Guttenberg told Automotive News. Germany, like Sweden, has expressed more concern about the government stepping into the private sector than Washington has.
