GM CEO Fritz Henderson is in Germany to attempt to repair relations with those in Germany, especially the government, who were upset that GM decided not to sell a majority stake in Opel to a Magna-led consortium.
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However, the German government continues to sound cool on the idea of giving aid to Opel under GM.
It is unclear whether GM will ask Germany’s government for aid, but analysts say it probably wants to keep the option open.
But Germany’s Economy Minister Rainer Bruederle has said he doubts parent General Motors would be able to provide a sustainable concept for Opel – which is the German government’s condition for any cash injection.
“I am very sceptical that the company which has acted so wrong suddenly comes up with new ideas overnight,” he said, according to the FTD.
Meanwhile. credit rating agency Moody’s has poured some scepticism over GM’s estimate of a US$4.5bn cost of restructuring charge for Opel/Vauxhall. It says the funding requirement is more like US$8.5bn.
“The question remains, how will GM fund Opel? We do not think that the company’s liquidity position — including the resources available from the U.S. Treasury — are sufficient,” it wrote in a note.
“The company will have to make considerable efforts to rebuild bridges with the German government and the unions, both of whom have been extremely angered by GM’s reversal on Opel,” Moody’s said,
Opel’s competitors in Germany have continued to strongly oppose state aid for the carmaker. Daimler CEO Dieter Zetsche said in an interview with Nordwest-Zeitung that he was no fan of such support actions. According to Zetsche, it was GM’s responsibility to secure a positive future for Opel. State aid of such magnitude would present a distortion of competition, he said.
