GM has announced it will provide 1.9 billion euros (£1.7bn) of funding to Vauxhall/Opel to fund its recovery - more than three times the amount it originally put up.
Nick Reilly, CEO of Opel/Vauxhall, said the GM contribution would be made in the form of both equity and loans.
“GM’s 1.9 billion euro commitment is the right course of action for Opel/Vauxhall and should clearly signal our determination to fix our business,” said Nick Reilly. “Our call for the additional funding was approved by GM’s senior management and supported by the GM board of directors.
"We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about government guarantees to cover the remaining gap.”
In order to instigate its so-called 'viability plan', Vauxhall/Opel needs 3.7 billion euros, with the rest of the money being provided by European governments.
“It is of vital importance for GM to demonstrate our commitment for our European operations,” said Ed Whitacre, GM Chairman and CEO.
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