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Old 11-14-2008, 01:57 PM   #1
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Default GM’s Opel asks German government for cash Guarantees

With General Motors’ future uncertain here in the U.S., the automaker’s foreign arms are getting a little nervous about what might become of them. GM’s German Opel division is taking matters into its own hands, with Opel’s Managing Director Hans Demant asking the German government for guarantees to ensure Opel’s survival.

Because of the problems GM is currently facing in the U.S., it’s easy to forget just how global GM’s operations are. But Opel is feeling the economic pinch just as much as any automaker, with sales seeing a significant drop-off.

“We want to assure Opel’s future in Europe as well as our jobs,” Opel labor leader Klaus Franz told Automotive News. “The aim of the current talks is to prepare additional backing for loans because parent company General Motors’ global financial situation has deteriorated.”

According to Germany’s Handelsblatt news paper, the German state of Hesse – which happens to be the home for Opel’s headquarters – is considering a $634 million aid package to see Opel through these tough times. No word on a timeframe for the German government’s decision, but with GM running out of cash at an alarming rate, we suspect a ruling will be coming sooner rather than later.
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