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Opel asks for billions

Published:Sunday | February 14, 2010 | 12:00 AM

FRANKFURT (AP):General Motors Co's Opel unit asked European governments for billions of euros (dollars) in aid on Tuesday as it formally presented a restructuring plan that will result in some 8,300 job cuts.

Opel is seeking loans and loan guarantees to the tune of some €2.7 billion (US$3.7 billion) as part of a programme under which it plans to invest €11 billion (US$15 billion) through 2014. It aims to break even by 2011.

Chef Executive Nick Reilly declined to say how much was being sought from individual countries, but said: "We don't anticipate we will be turned down."

German Economy Minister Rainer Bruederle said GM is seeking loan guarantees covering €1.5 billion from the German federal and state governments.

Bruederle was non-committal, telling reporters that "we will carefully evaluate the documents we now have." He noted that European countries previously agreed that the European Commission should conduct a preliminary evaluation.