GM's Opel division asks for German loan backing
Last Updated: Friday, November 14, 2008 | 11:00 AM ET
The Associated Press
Related
Automaker Adam Opel GmbH, owned by General Motors Corp., said Friday it will seek loan guarantees from German governments as the financial crisis grips European carmakers.
Opel said it would seek guarantees for an unspecified amount from the federal government and the governments of Hesse, Thuringia, Rhineland-Palatinate and North Rhine Westphalia, German states where it has facilities.
Chief executive Hans Demant said the loan guarantees would help secure jobs in Germany and ensure the company's future across Europe.
"The goal is to safeguard Opel's competitiveness even in this difficult global situation," he said.
Finance Ministry spokesman Torsten Albig said the government "will examine the situation carefully next week when all the stakeholders come together."
Demant and Opel employee council chief Klaus Franz, along with GM's European president, Carl-Peter Forster, wrote a letter to Chancellor Angela Merkel on Monday outlining their concerns. The letter called for tax breaks for new cars, which it said would be "socially and ecologically astute."
Kroemer Opel also called for a "line of credit with low rates to buy new, fuel-efficient cars," in addition to a premium to abandon cars more than 10 years old.
General Motors reported last week it lost $2.5 billion US in the third quarter and is burning through so much cash that it could reach the minimum amount required to run the company by the end of this year.
The parent company is lobbying intensively with the U.S. government for part of $25 billion in low-interest loans for the battered auto industry.
Share Tools
Top News Headlines
- Greece passes new austerity deal amid rioting
- Greek lawmakers have approved harsh new austerity measures demanded by bailout creditors to save the debt-crippled nation from bankruptcy, after riots in Athens and other cities left stores looted and burned and more than 120 people hurt. more »
- Quebec town 'heartbroken' after killing of woman, sisters
- A small Quebec town is in mourning Sunday after a Quebec man was charged with killing his nieces and his mother, who were found dead in their family home. more »
- Houston autopsy results withheld by police
- Whitney Houston was found in a hotel bathtub but it'll take weeks to determine precisely how she died, a Los Angeles coroner's official says. more »
- Musicians who died before their time
- The growing list of musicians who have died young. more »
Latest Business Headlines
- Air Canada reaches tentative deal with dispatchers
- Air Canada has reached a tentative collective agreement with the Canadian Airline Dispatchers Association, representing the airline's 74 flight dispatchers. more »
- Old Age Security untouched until 2020, Flaherty says
- Finance Minister Jim Flaherty says Canadians should expect no changes to Old Age Security benefits before 2020 or 2025, and details about reform would be outlined over more than one budget. more »
- CAW questions Caterpillar takeover of Electro-Motive
- The head of the Canadian Auto Workers is suggesting Caterpillar Inc. may not have followed foreign takeover rules in its 2010 purchase of the London, Ont., locomotive plant it has since shut down. more »
- Canada's trade surplus doubles in December
- Statistics Canada says exports rose 4.5 per cent in December and imports edged up 0.8 per cent, pushing the country's trade surplus with the rest of the world to $2.7 billion from $1.2 billion in November. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12389.42 | -108.52 |
| DOW | 12801.23 | -89.23 |
| NASDAQ | 2903.88 | -23.35 |
| SP 500 | 1342.64 | -9.31 |
| NYSE COMPOSITE | 7992.05 | -89.2 |
| AMEX | 2417.98 | -18.65 |
| TSX-VENTURE | 1653.55 | -11.27 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Pop queen Whitney Houston dies at 48
- Houston autopsy results withheld by police
- Greece passes new austerity deal amid rioting
- Foo Fighters win 5 Grammys
- Carleton University confirms death of student
- Quebec town 'heartbroken' after killing of woman, sisters
- Ultimate Tazer Ball combines shock and soccer
- Manitoba man dies after falling off moving SUV
- Adults-only trade show cancelled in B.C. Bible belt

