Much like its domestic brands, General Motors’ Opel brand has taken a significant hit on the back of collapsing new car sales, which has greatly eroded the German automaker’s bank account. Per a new government report, Opel only has enough cash on hand to continue operating into April.
Although well short of a long-term viability plan, the German government actually sounded pleased that Opel will be able to limp into April on its own. “What is positive is that money is apparently still there for them to carry on,” Germany’s Dagmar Woehrl told Automotive News.
However, Opel will need government financing if it is to carry on beyond April. Opel – and its Vauxhall stable mate – is seeking 3.3 billons euros in guaranteed loans from various European governments in order to keep its operations up and running. If no countries step up to buoy the ailing brands, GM Europe warns its money could dry up by the second quarter.
03/18, 2:00 PM
posted by:
Borat
I reckon it is great news on March 18.
03/18, 2:26 PM
posted by:
orangecones
Ooo…scare tactics. “if we dont get 3bln euro we will die” … ok fine, die. Free market share for more interesting competitors to take over.
03/18, 3:50 PM
posted by:
fan
yup, that is it, orangecones
03/18, 8:57 PM
posted by:
wagon
The governments giving these companies money does not mean the consumers will purchase their products.
03/19, 4:48 AM
posted by:
No more oil for GM
^ how true. too bad the u.s. don’t get that and kill their own crap first.
03/20, 10:38 AM
posted by:
fan
so its 10 days left for opel? they could wait another day and then use a cheaper single digit countdown-display, opposed to a two digit display