Business News
Merkel says GM must bear main cost of Opel revamp
Nov 10, 2009, 9:50 GMT
Berlin - German Chancellor Angela Merkel said Tuesday the giant US carmaker General Motors would have to bear the main burden of the cost of restructuring its troubled European Opel offshoot.
Speaking to parliament, Merkel said that the Detroit-based GM would have to fund the major part of the Opel revamp from its own resources.
Her comments came as GM prepares to unveil this week its restructuring plan for Opel, which includes operations in Germany, Belgium and Spain as well as Britain's Vauxhall brand.
The chancellor's remarks also come about a week after GM announced that it was abandoning moves to sell off a majority stake in Opel. Instead GM now plans to restructure its European unit itself.
GM chief Fritz Henderson arrived in Germany on Monday ahead of the company setting out its proposals for Opel.
This is expected to result in GM slashing Opel's more-than 50,000 European workforce by 10,000.
But unions are also concerned that GM plans to close plants, with the Opel factory in the Belgium city of Antwerp in particular seen to be facing an uncertain future.
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