Because of the sudden move by GM to keep Opel, German Chancellor Angela Merkel wants the German government loans supporting Opel paid back and a plan to restructure the company submitted by the end of November. European labor unions have also begun protesting GM’s continued management of Opel, as many workers accuse GM of neglecting and misleading the brand.
“The Chancellor made clear that the German government would urge General Motors to present a new plan as quickly as possible and to repay bridge financing by the end of November,” said a German government spokesman.
Despite GM’s recent bankruptcy, CEO Fritz Henderson feels confident he can find the €3.9 billion ($5.8 billion) necessary to repay the German government and restructure GM Europe. Regardless of the owner, jobs at Opel and Vauxhall plants were slated to be cut -- a major issue for the German government. Henderson declined to reveal how many jobs will be lost and which plants will close. He said those details will be shown to Germany and other European governments as part of the restructuring plan.
“We want Opel to continue to exist,” said Roland Koch, premier of the Hesse, a German state. He also warned GM not to “maximize profits by taking German workers hostage.”
Merkel was a proponent of the Magna-led takeover of Opel and showed her substantial concern for GM’s ability to restructure and operate Opel by contacting President Barack Obama. Obama told Merkel in a conversation on Wednesday that he was not involved in GM’s surprise decision that angered representatives of both sides of the German government.
The German government is not the only one angry with the Tuesday announcement right now. Russian Prime Minister Vladimir Putin also lashed out at GM.
“We will have to take into account this style of dealing with partners in the future, though this scornful approach toward partners mainly affects the Europeans, not us,” said Putin at a cabinet meeting in Moscow. “GM did not warn anyone, did not speak to anyone…despite all the agreements reached and documents signed. Well, I think it is a good lesson.”
Source: Automotive News