Germany wants GM to boost Opel contribution image

Germany wants General Motors Co. to increase its contribution to the Opel unit’s reorganization before considering whether to provide state aid, according to two people familiar with the matter.
Economy Minister Rainer Bruederle is using a two-day U.S. visit, which includes a meeting with Treasury Secretary Timothy F. Geithner in Washington, to express that view, said the people, who declined to be identified because the discussions are confidential. GM has said it will provide 600 million euros ($836 million) for Opel’s restructuring and ask for as much as 2.7 billion euros from European governments.
Germany made money available last year to keep Opel afloat and is more cautious about providing aid after GM backed out of an agreement to sell the unit to Magna International Inc., the bidder favored by Germany, the people said. Detroit-based GM decided in November to retain Opel.
The German government expects GM to file a request for state loans by mid-February, they said.
GM has said it needs financial support from governments including the U.K., Spain and Poland. The carmaker hasn’t given a breakdown of how much it wants from each country and it’s unclear how much more Germany wants GM to contribute. Opel Chief Executive Officer Nick Reilly reiterated as recently as Jan. 21 GM’s target to seek a total of 2.7 billion euros from European governments.

Source: Bloomberg