Thursday, September 10, 2009

Crunch Time for GM Europe.

(New) General Motors are expected to announce what the future holds for Opel/Vauxhall as they announce who is buying (or not selling) GM Europe today at a press conference in Berlin, Germany.
It is thought that GM really do not want to sell the mainstay of GM Europe, hence the length of time they have deliberated about the sale and why no real news of favoured buyers has been released. Two days worth of meetings have been held in Detroit, America, by GM in an attempt to keep GM Europe in their control.
Whether GM not selling is a realistic option remains to be seen, the German Government (the the Opel Trust which is currently running GM Europe) have a very important say in the final decision on the future of both Opel and Vauxhall. So far all the Germans have said is „The €1.5 billion bridging credit is a loan. And a loan is a loan. GM must pay back the €1.5 billion under the conditions that we agreed on for Opel” and that there will be no more monies available should GM close factories in Germany. Whether this signals acceptance that GM are keeping GM Europe remains to be seen.
Certainly GM, Opel and the German government need a swift conclusion, the Frankfurt motor show and a German general election preclude any more stalling. The German voters and European car buying public need to know who owns Opel/Vauxhall and how secure their future is.....

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