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Germany Rejects GM Bid to Help Opel

Automaker will need find help elsewhere.

by on Nov.12, 2009

Taking her soccer ball and going home since German jobs won't be overly potected?

Taking her "soccer ball" and going home since German jobs won't be overly protected?

Still smarting over General Motors’ decision to call off the sale of its German-based Opel subsidiary, government officials, in Berlin, have told the U.S. maker they won’t come up with any aid to keep Opel operating.

The Germans are also expecting GM to pay back the balance of  a $2 billion bridge loan, provided earlier this year, to keep Opel from failing, government officials have confirmed.

The bad news was relayed to interim Opel CEO Nick Reilly, and GM’s international director, John Smith, during a meeting with German Economic Minister Rainer Bruederle.

In-Depth News and Analysis!

In-Depth News and Analysis!

While General Motors CEO Fritz Henderson said, this week, during a visit to Germany, that the automaker will cover a “sizable” share of Opel’s restructuring – and had also noted, recently – that the subsidiary’s finances are improving – GM is still hoping to raise additional money from some of the other European governments who have a stake in Opel’s survival.