General Motors said it remained confident it would secure up to EUR1.5bn (US$1.8bn) in German loan guarantees for its Opel restructuring despite widespread reports the government was becoming more reluctant to grant the request.
The German government is due to hold a meeting in Berlin later this week at which it could signal budget cuts after underwriting a significant Eurozone bailout and helping Greece through its economic difficulties.
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However, a GM spokeswoman said the automaker was working towards a position where it would receive the guarantees, which would be in addition to other European governments providing similar aid in those countries where Opel is most present.
“We are working on the assumption we will get the loan guarantee from the German government,” she said.
But widespread speculation in Germany has centred on the economics ministry reaching the view that given GM’s improving financial health, it could decline to provide the guarantees.
Germany has stalled for some time on any Opel decision, with the ministry considering the request in three stages, the last of which is due to be discussed this Friday (4 June) and a decision announced next week.
The uncertainty is in contrast to this week’s signing of a deal between Opel and its labour representatives, that should secure some EUR265m in savings to be ploughed back into new product development.
The German economics ministry could not immediately be reached for comment.
