Wednesday, November 4, 2009
Germany Not So Happy with G.M.
After 6 months of negotiations and a decision to sell its majority stock to Magna, G.M. has decided that it doesn't want to give Opel up just yet. G.M.'s new board has decided that they want to keep Opel because it is a major part of G.M.'s global development strategy and have stated that they expect to spend $4.4 billion in order to downsize operations. Obviously, the German government is not taking this all too well. Last spring the government had provided $6.6 billion to help finance and bridge loans when G.M. had filed for bankruptcy in the U.S., a move that preserved nearly 25,000 jobs in the company. The Germans are now intent on getting that money bank, after having been so jilted by G.M. as they had worked to get the deal moving.