GM calls on European states to back &Euro;3.3bn bailout
November 24, 2009
By Aoife White Brussels
GENERAL Motors (GM) yesterday asked European governments to help pay most of the €3.3 billion (R37bn) it needs to restructure its struggling European operations.
Nick Reilly, the chief executive of GM Europe, which houses the Opel and Vauxhall units, said it would be "quite difficult" for GM to supply much of the funding because it must also bear restructuring costs in the US and elsewhere.
"We are looking for the support of any government that feels willing to be able to provide us some financing support in the medium term."
Reilly said GM would not be influenced in deciding where to cut jobs by how much money each government might offer because "the plan that we have is already in existence".
He refused to give details of the plan to cut some 20 percent to 25 percent of GM Europe's car making capacity, which would likely shed thousands of jobs. He said he first wanted to talk to workers' representatives.
GM met yesterday with ministers from Germany, Belgium, Britain, Spain, Sweden and Poland as well as EU commissioners in Brussels to discuss cutbacks and aid.
Germany's Deputy Economy Minister, Jochen Homann, said there was a commitment from all countries not to make any promises before GM put forward the restructuring plan. Belgium's Kris Peeters said he expected the company to send that plan to governments at the end of this week.
Britain and Poland have indicated that they were ready to support GM operations in their countries. Spain said any support it gave would have to be agreed by the company and its workers.
EU commissioners warned that GM job cuts had to be made on an economic basis, not to curry political favour. - Sapa-AP
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