GM to ask Europe for most of $4.9 billion needed to restructure Opel

General Motors Company will present a plan later this week for its future plans for Opel. The automaker is expected to ask the European government to pay for most of the $4.9 billion it needs to restructure the struggling European brand.

Nick Reilly, interim CEO at Opel, said it would be “quite difficult” for GM to supply a significant part of the funding because it is facing restructuring costs in the United States and elsewhere.

“We are looking for support of any government that feels willing to be able to provide us some financing support in the medium term,” Reilly told reporters after meeting officials from EU nations where GM makes cars. “We have indicated that we will provide some of the funding.”

Reilly refused to outline details of the plan that may include a 20 to 25 percent reduction in Opel’s car making capacity.

“People at the plants will be the first to hear it,” he said.

– By: Omar Rana

Source: MSNBC