General Motors has paid EUR650m to Opel/Vauxhall to cover engineering services as the division is restructured, the automaker said in a US government filing.
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“In order to assist in the funding of the Opel/Vauxhall business until more permanent financing sources can be obtained, GM provided additional support of EUR650m (about US$930m)” on 4 January, a statement sent to the US Securities and Exchange Commission (SEC) said, according to Reuters.
“Specifically, GM is pre-paying the AOG Group (Adam Opel GmbH) for certain engineering services” that would normally come due in April and July, it added.
Having decided to keep Opel/Vauxhall, GM needs EUR3.3bn to finance restructuring and hopes to obtain EUR2.7bn in aid from European countries where the car makers have operations.
Nick Reilly was last week named head Opel CEO responsible for all Opel/Vauxhall activities worldwide. He has prepared a restructuring programme, that includes around 8,300 job cuts from a total workforce of nearly 50,000, and yesterday outlined some of his plans in a letter to employees.
In November, GM paid Opel EUR600m to repay a German loan that had kept the company afloat.
