GERMANY: GM's Opel asks chancellor for help
Opel has asked the German chancellor Angela Merkel for support.
According to the Frankfurter Allgemeiner Zeitung, management and the works council wrote to the chancellor urging her to support a EUR40bn credit package for the European automotive industry, made available by the European Investment Bank.
In addition Opel asked for scrapping incentives for old cars, and interest-free credit for the purchase of new cars.
The letter was signed by Carl-Peter Forster, president of General Motors Europe and Opel chairman, and Opel managing director Hans Demant, as well as the head of the works council, Klaus Franz.
Having announced a billion dollar loss for the last quarter, GM is aiming to cut US$750m in costs from its European operations, Franz told Financial Times Deutschland. But a GM spokesman said planned investments would not be affected and there also were no plans for any workforce reduction.