The Adam Opel GmbH Supervisory Board today formally appointed GM Europe President Nick Reilly as CEO responsible for all Opel/Vauxhall activities worldwide, a post he assumed back in November.
Hans Demant, is no longer Managing Director of Adam Opel GmbH and GM Europe Vice President, Engineering. Instead he becomes Vice President, Global Intellectual Property Rights.
The latest moves follow a filing with the U.S. Security and Exchange Commission that revealed GM last week had given Opel another €650 million (~$930 million) in cash by prepaying its loss-making subsidiary for upcoming engineering services.
Critics claim that the only reason GM has the cash for such a transfer of funds is because U.S. and Canadian taxpayers have given it $50 billion. They also note that the European Union central government is vehemently against bailouts of automakers, although it readily pumped billions into banks and other financial institutions last year.
The money GM transferred — wherever it came from — is needed to keep Opel afloat while GM continues its quest for European government financing to restructure Opel/Vauxhall. GM has previously said that it will take as much as $4.8 billion to reorganize Opel. European state governments are considering requests for help at a pace that is best described as leisurely.
GM repaid a bridge loan from the German Government of €600 million ($860 million) after GM’s Board refused to go forward with the sale of Opel to Magna and Sberbank back in November. The German Central Government, regional government and the German Metalworkers union all had strongly supported the sale as a way to preserve German jobs.