General Motors gave up on Wednesday on getting state aid from European governments for its loss-making Opel unit, saying it now had the financial firepower to finance a restructuring itself."The validity and reasons for requesting government guarantees have ... not changed but the process has proven to be much more complex and longer than anticipated," the US auto giant said in a statement."GM?s recently improved financial strength has also been a catalyst for making this decision."
The German car maker Opel, which was rocked this year by industrial uncertainty, said Tuesday that its German sales gained 31 percent in 2009 owing to a government cash-for-clunkers scrapping bonus.Opel said the sale of 339,000 vehicles was its best result since 2005 and gave it a domestic market share of 8.9 percent.While its US parent company General Motors weighed selling the loss-making division, Opel benefitted from state aid worth 2,500 euros (dollars) for drivers who junked their old cars and bought new ones.
General Motors' interim Europe chief completed a tour of Opel's four German plants on Wednesday pledging none would be shut down as the US giant slashes capacity at its loss-making unit.Nick Reilly gave the promise at Opel's Eisenach plant, after earlier giving similar assurances at Ruesselsheim, Bochum and Kaiserslautern, between them home to 25,000 workers, half the European total.
German automaker Opel said Friday that General Motors' Nick Reilly has been named new chief executive responsible for Opel and its sister brand Vauxhall as part of a broad restructuring.Opel's supervisory board named Reilly, already head of General Motors Europe, to the post, making him "responsible for all Opel/Vauxhall activities worldwide," a statement said.Reilly, from Britain, has already begun drawing up a tough restructuring plan for Opel that includes 8,300 job cuts and could cost European governments up to 2.7 billion euros (3.9 billion dollars) in state aid.
JEAN-CLAUDE TRICHET, President of the European Central Bank, has come out swinging in the second round of Europe’s crisis of both politics and finance. Yields on the sovereign debts of peripheral euro zone countries stabilised yesterday after Mr Trichet argued that investors are “under-estimating the determination of [euro zone] governments...and indeed the 27 member council”, providing some respite to beleaguered members.