Opel in bail-out talks

Opel set to be the first European car maker to ask for a government bail-out

Auto Express Car Reviews

By Jamie Fretwell

27th February 2009

Reports suggest Vauxhall's parent form Opel is on the verge of asking the German governmenr for a £3 billion bail out.

The firm's board of managers are currently presenting a business plan, and according to insiders, the German government is keen to help out.

Earlier this week, 15,000 Opel employees protested in Germany. Workers' Unions added to the pressure by pushing for an independent European Opel-Vauxhall group that would include outside investors such as the brand’s dealers.

Opel says it needs the money to stay in business.

Opel is looking for the state to guarantee 2.6 billion euros in loans and wants an extra 700 million euros in savings in order to bridge a liquidity gap over the next two years. What will happen then, no-one knows, but last year GM said its European division had racked up pretax losses of .8bn (US) in 2008.