Friday, November 6, 2009
Opel Not Too Far Gone
G.M's decision not to sell Opel apparently has a lot to do with the fact that Opel's finances are not as far down the hole as previously believed. It was previously forecasted that Opel needed $3.3 billion in order for the company to function until 2011, however, it is now believed that it will only cost $2 billion for Opel to survive until that time. This will obviously still require a lot of government lending from both the United States and Europe, but we'll have to see how willing Germany is to giving aid to Opel, as they are particularly upset with the scrapping of the Opel - Magna deal.