Click Here For The Peninsula Home Page
  Home | Site Feedback | Contact Us     
Qatar News
World News
Business News
Sports News
Entertainment
Features
Young Editors
Commentary
Editorial
Photo Gallery
Discussion Forum
From Our Archives
Search

Free Newsletter
e-mail:
Contact Us
Contact Details
Advertising
Newspaper Subscribe
Letters To The Editor
Site Feedback
General Motors prepares strategy for Opel
Web posted at: 11/24/2009 1:57:57
Source ::: FINANCIAL TIMES

By John Reed in London, Nikki Tait in Brussels, and Daniel Schäfer in Frankfurt

European government officials said they expected General Motors to outline a strategy for its Opel unit within days, and made plans to discuss the re­structuring in depth in the first week of December.

After a meeting organised by the European Commission, European Union industry ministers said they had “agreed to continue the political discussion” about Opel in the context of the bloc’s competitiveness council, which is due to meet on December 3 and 4. Kris Peeters, premier of Belgium’s Flanders region, where GM’s Antwerp plant is located, said he expected the Detroit automaker to present its plan for its European arm by the end of this week.

Other governments with GM plants, including Britain’s, are also pressing the US carmaker for details of its business plan before pledging loans or guarantees to finance Opel’s bailout. GM says it needs €3.3bn ($4.9bn) to restructure Opel and fund investment in new products, some of which it says it will fund itself.

GM has not yet given details of where it plans to cut 9,000 to 10,000 jobs as part of a plan to reduce its capacity in Europe by 20 to 25 percent.

Nick Reilly, GM’s head of international operations, who is temporarily running Opel, said last week that a restructuring plan would be ready by mid-December. At yesterday’s meeting, Neelie Kroes, the EU’s industry commissioner, said European state aid rules needed to be respected in any Opel restructuring, and that financial support by any member state should be based strictly on objective and economic criteria.

Brussels said the gathering had “reconfirmed the need for European coordination”.

A warning by Ms Kroes over illegal state aid played a key role in derailing GM’s plan to sell Opel to Magna International with €4.5bn of mostly German government aid, which the US carmaker’s board shelved on November 3.

Reilly said yesterday that the implementation of any restructuring plan would be “based on economic criteria and not be impacted by any government’s decision to what extent they support the plan”. Rainer Brüderle, Germany’s new economics minister from the liberal FDP party, has repeatedly ruled out state loans to restructure Opel, although it remains unclear whether this view is supported by the CDU, his party’s larger coalition partner.

 
Related Stories

UAE sees low growth in ’10

Nasdaq Dubai changes opening hours

Shuaa eyes fee income boost

Kuwait cuts repo rate to help fund development

Euro zone bond frenzy echoes past battles

US hob market perhaps finally stabilising

CNOOC emerges from shadows, eyes big deal

Saudi concludes deals for term gas oil supply

ENI awards $1.16bn contract to Hyundai

Singapore picks Samsung to build first LNG terminal

Uzbekistan cuts gas supplies to Tajikistan

Oil holds above $71 due to weak dollar

Political thaw lets hope bloom in Kuwait

Sabic remains on expansion course: Mady

Pfizer launches e-payment system

Dubai offered an alternative vision of the future

Asian shares at 5-month low on EU woes

Islamic finance may return to roots post-crisis

China patents surge as US filings plunge

China’s wealth fund has $9.6bn in US stocks

More Business News


Qatar News | World Watch | Business News | Sports News | Entertainment | Features
Young Editors | Commentary | Photo Gallery | Discussion Forum

  Back to the Top © 2001 The Peninsula. All Rights Reserved.
Contact Us for any content re-production.
To advertise on the site, please get in touch with our Ad. Manager.
Site designed and developed by:
SiDSnetMinds