General Motors working on Opel spin-off

Posted: Feb 27, 2009
Filed under: GM, Industry News, Opel

After some 15,000 thousand workers rallied outside Opel’s Ruesselsheim headquarters, GM said it has decided to spin off its German unit and needs 3.3 billion euros ($4.2 billion) in state aid to avoid major job cuts.

Carl-Peter Forester, GM Europe President, said that a spin off mean that Opel would remain linked to General Motors while outside investors take more than a quarter of the company. According to sources, the spin off could range from 25 percent to 50 percent of the company. Opel’s UK brand Vauxhall will remain a part of the spin-off company.

Forester said that Opel is seeking 3.3 billion in aid from European governments to avoid bankruptcy. He said that the loan “will be paid back at the latest by 2014-2015.”

Source: Reuters

Related Posts:

  1. General Motors has started “intense” preparations for bankruptcy
  2. Abu Dhabi looking to take a stake in General Motors’ Opel
  3. General Motors may sell its Saab and Opel stake
  4. U.S. Treasury gives General Motors $5.4 billion in loans
  5. UAW’s Gettelfinger: General Motors and Chrysler may not need more federal loans

  • Neil
    Opel makes really good cars in 3 countries, Germany, England and Spain

    And it would be a shame to see them go but losing Opel would remove a great deal of the overcapacity in Euro car industry and perhaps save other marques
  • zermatt
    But yet the would like to hold onto Buick and part of Pontiac?

    I have rented a lot of Opels and they make a decent car.
  • Pat
    Opel insignia is amazing.... Saturn needed that ....but now i think chevrolet should get it...wait isn't pontiac getting rid of the G8....the insignia should take its place
  • Lac
    +1

    Insignia is amazing
blog comments powered by Disqus