General Motors has indicated it would contribute around EUR600m (US$904.3m) of its own cash to restructure Opel, German economy minister Rainer Bruederle said on Wednesday.
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“GM wants to provide EUR600m itself and wants the rest to be provided by European taxpayers,” Bruederle’s ministry said in a statement, adding that GM had submitted a summary of a restructuring plan for Opel and British unit Vauxhall.
GM has said it needs EUR3.3bn to overhaul Opel, which would leave approximately EUR2.7bn to be financed by European governments, Reuters noted.
Bruederle said GM had yet to convince Germany that the carmaker warranted state aid.
“The paper submitted is not an application for state funds and cannot serve as the basis for making an assessment of one,” he said. “It provides no answers to any of the important questions about Opel’s future.”
The minister added that Tuesday’s abrupt departure of Fritz Henderson as chief executive did not reflect well on GM.
“Both the paper and the resignation of GM chief Henderson confirm that there is no clear line at GM,” he said.
