Opel, the German unit of General Motors, is in line to get as much as $1.4 billion in government assistance, according to three reports in Europe today.
Talks between Opel executives and the German government are scheduled Tuesday, Jan. 13, to negotiate the conditions under which the government would provide loan guarantees, according to the Associated Press and Bloomberg.
It is to be expected that the guarantee request has good prospects if certain conditions are fulfilled, Franz Muentefering, chairman of Germanys Social Democrats, said today at an event in Ruesselsheim, where Opel has a major plant. The Social Democrats share power with Chancellor Angela Merkels conservatives.
Opel will be negotiating with Germans Economy Ministry and four states in which the company has plants.
We have adopted a positive decision, Joachim Winkler, a spokesman for the Economy Ministry, told Bloomberg. Opel now has to deliver and provide evidence on three or four more points.
GM, which has been under pressure from Congress to unload underperforming business units and brands, has no plans to sell Opel.
Opel is kind of in the middle of our global system, CEO Rick Wagoner told Automotive News in November. Their International Technical Development Center is integral to global product development. It plays a huge role.