GM Europe asks for $4.18 billion
General Motors has just announced that it’s European operations, including brands Opel and Vauxhall will split-off from GM.
The deal would see anywhere from 25 to 50 percent of of GM Europe sold off to private investors, however, GM would continue to hold a majority stake in the company. (Call us crazy, but who would want to invest in a company that was still controlled by the same people who drove it into the ground)?
The news comes a day after thousands of Opel workers in the city of Ruesselsheim protested and asked that Opel split off from GM after 80 years of ownership by the U.S. company.
GM Europe is asking for $4.18 billion from European governments in loans to facilitate its restructuring efforts that would see the company profitable by 2011.
The German government, however, isn’t jumping at the chance. Economy Minister Karl-Theodor zu Guttenberg asked that GM first take very other measure possible before the German government would even consider a bailout. Zu Guttenberg even hinted that were the German government to get involved it would most likely like a say in where the money goes and what the restructuring plan would look like. GM Europe, after all, has plants in Germany, Belgium and the U.K.