Germany will not help GM in restructuring Opel

[rickaren]

Germany will not help GM in restructuring Opel

Posted on Thursday, November 12th, 2009 at 5:36 PM EST. (Employee News)

A senior German government official told General Motors Co. executives Wednesday that the U.S. automaker will have to cover the cost of restructuring its troubled German carmaker Adam Opel GmbH, The Detroit News reported.

Economy Minister Rainer Bruederle said he reiterated the position outlined by Chancellor Angela Merkel at a meeting in Berlin with Nick Reilly, GM’s head of international operations, and John Smith, the chief negotiator in the Opel bid talks, the paper said. Merkel told the lower house of Parliament on Tuesday that GM would have to rely on its own resources to restructure Opel, the News said.

GM Chief Executive Fritz Henderson also was in Germany this week to speak with Opel executives and labor representatives following the U.S. automaker’s unexpected decision last week to keep Opel, the paper said. GM previously negotiated a deal to sell a majority stake of Opel to Canada’s Magna International Inc., a plan favored by the German government, the story said. (The Detroit News)