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Opel reorganization plan - economic committee examines: GM must improve Opel concept

Opel restructuring plan - economic committee is reviewing
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This concerns, for example, GM's own contribution the estimated renovation costs of 3.3 billion euros for the European subsidiaries. The job cuts at Opel is called 'only conditionally understandable 'criticized. In addition, financial aid from other EU countries is still unclear.

GM must increase its restructuring contribution

GM has applied for state aid totaling 2.7 billion euros from the EU states with Opel /Vauxhall plants. Of this, 1.5 billion will be attributable to Germany - as guarantees from the federal and state governments with Opel locations. The remainder is to be contributed by Great Britain, Poland, Spain and Austria. In Germany and Great Britain, a private bank loan is sought, which is to be secured by the state. Project financing is planned in other countries. On Monday, the guarantee committee of the federal and state governments wanted to advise on the GM concept.

The State Secretary in the Hessian Ministry of Finance, Thomas Schäfer (CDU), told the 'Handelsblatt' that GM's contribution was far too low and should be can be increased significantly. An essential point will also be how GM wants to prove that European credit support does not sponsor other activities of the group outside of Europe.

According to Handelsblatt information from government circles in Berlin, GM should at least half the offered 600 million euros assume the estimated 3.3 billion renovation costs themselves. On behalf of the federal government, the auditing firm PricewaterhouseCoopers will examine the viability of the GM concept.

GM concept too undetailed

The economic committee complains that the fundamental question of the appropriateness of the GM contribution and the necessity or the amount of the guaranteed funds are not answered in detail. In its application, GM only argued across the board that 'large parts' of GM's liquidity would be needed to repay the loan in the USA and Canada and to restructure there. A differentiated presentation of the possible GM support services is missinghowever.

The own contribution of 600 million euros mentioned by GM has already been used to repay the German bridge loan. It is therefore not available for investment. The employee participation in the amount of 265 million euros annually is still pending, but represents a basis for the financial calculations in the concept. The 'amount and nature of the financial contributions' of the other EU countries remain unclear.

K is also ritualized by the economic committee that it only says in the application that the transfer of funds is 'to be restricted', but that the foreclosure concept is not specifically presented. In addition, there was a lack of reliable statements on the equity problem and the question of whether the risk of bankruptcy could be ruled out with sufficient probability for Opel even after the overindebtedness concept of the insolvency code, which was valid until the end of 2013, had expired. The job cuts are only partially comprehensible, since the comparative figure is not specified in each case. It is also unclear whether the employees who are leaving as part of partial retirement and similar models are included in the total number of 8,354 - of which around 4,000 are in Germany.


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