Currently reading: Germany's Opel loan delays
Union backlash as aid decision delayed
Autocar
News
1 min read
26 May 2010

The German government's rescue fund committee has delayed a decision on whether to guarantee loans that would help secure Vauxhall/Opel's restructuring plan.

Vauxhall/Opel's £3.2 billion restructuring plan includes about £1.1bn of loan guarantees that are needed to help the company reduce European production and cut its workforce by 20 per cent.

Although a decision wa sexpected this week, Germany's Economics Minister Rainer Bruederle said a decision on loan guarantees would now not come until late May or early June.

Government officials are justifying the delay by saying Vauxhall/Opel is not in any danger of collapse. Vauxhall/Opel first requested aid 18 months ago.

The decision has prompted a backlash from workers' unions in Germany.

"While all other countries in Europe affected have long since decided (in favor of aid) for Opel, the German government economic policy is still spinning in circles," said Armin Schild, regional union boss from IG Metall Frankfurt.

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Straff 26 May 2010

Re: Germany's Opel loan delays

Sorry; multi-tasking again. That should have said 'Bank of Athens'. I don't want to upset our Greek and Turkish Cypriot friends...

Straff 26 May 2010

Re: Germany's Opel loan delays

Because the German Government are not having to find the cash (presumably it's all now in Bank of Nikosia). This is like giving a personal guarantee for a business; as long as there is not a problem with repayment it's never called upon. I'm not suggesting that anyone would enter into such a thing lightly but there is less of a problem than first appears.

jackjflash 26 May 2010

Re: Germany's Opel loan delays

I agree; Germany shouldn’t give GM anything. GM should close the Bochum plant and move the work to Gliwice if they need the extra capacity in the future. They just need to trim the fat.

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