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Opel to withdraw loan requests


Posted on by 7

Vauxhall andOpel have withdrawn their offers for aid from the European government. They claim the reason for the dropped request is down to long delays.

In a statement, the GM brands said that their request for £1.5 billion in aid has been withdrawn, but money is still needed. Instead of asking for help, GM said it would fund the restructuring itself.

"GM’s recently improved financial strength has been a catalyst for making this decision," the carmaker said in a statement, adding that it expected to return to profitability "shortly".

GM Europe president Nick Reilly said: “"We cannot afford to have uncertain funding plans and new time-consuming complex negotiations at this time when we need to keep investing in new products and technologies."

Just weeks ago, Germany rejected a loan request to Opel, while the UK government is still looking into £275 of loans.

Source: Autocar


7 comments:

Well, I think the only solution that can be given is to make car that is in the trend, like electric or hybrid cars. Well, I guess the main problem here is the competition between hybrid and fuel-powered car.

It seems that GM is in the sort of financial problem..They need to build a new car that would sell like hotcakes in auto market. However, I wonder on how they will execute their plan since they have a problem in the budget.

I believe it may not wish to proceed with our offer, but the offer has been made.

well that was a good move from opel.. today there are many new models planning to release over the market.. with this competition on automobile are at high level.. execpt they are planning to release a high end model.

Yeah that’s right, save money for new products and technologies so that when time comes company can able to compete in other companies.

there are more important things to use that kind of money than gambling it with a car.

well he has some point over the loan rejects..good thing that he thinks first on what might happen when they fail..

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