GM waive governmental aid applications for Opel

GM waive governmental aid applications for Opel

GM decided to withdraw all applications for government loans for Opel / Vauxhall, it said in a press release of the American company, given the process too complicated and longer lasting than original expectations.

General Motors has announced that, together with the Opel / Vauxhall has decided to withdraw all government loan applications forwarded to several European countries. According to the press release of the American company, not have changed the funding needs of the Opel / Vauxhall planned Viability Plan, but this proved too complex and too lengthy than was initially anticipated result is still not complete or certain.

In these circumstances, and given the need for rapid progress in this plan, it was decided that financing be internal. GM recently strengthened financial position and so this was decisive in the decision.

"We appreciate the support shown by some governments, particularly that of Great Britain and Spain, but must move forward," said Nick Reilly, GM Europe president and director of Opel / Vauxhall. "The German government's decision last week was a disappointment which means that a conclusion in this state guarantees could take many months. To be clear, our financing needs have changed and I thought it guarantees loans available to European companies under the EU program to help transition the global economic crisis will be available at the same equally Opel / Vauxhall. But after a very long process defined by governments, proved to be so. Thanks for your decision and support the parent company, which will allow us to move forward with confidence in this highly competitive industry. We can not afford to have uncertain funding plans and time-consuming new negotiations in these times when we must invest in new products and technologies. With this restructuring and the impact we expect profits to return soon ", added O'Reilly.

After this notice, the Opel will focus on the implementation plan for growth, particularly in terms of investment of 11 billion in future products, announced in February. Products Opel / Vauxhall continues to hit European markets with large sales volumes, which exceeded internal expectations. The new five-door Astra, launched late last year already recorded 160,000 orders in six months, with only 20,000 less than a full year target. For the new Meriva Opel has received 30,000 orders in just a few weeks. The company also continued launching 7 new products this year and five next year, including revolutionary Opel amps.

Source: http://www.gm.com/


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