GM Europe continues as US operations bankrupt
01/06/09 21:43 Filed in: News
GM Europe has issued a press statement
to make it clear that the European operations of the car giant are
continuing as normal and are not included in the moves for
bankruptcy protection by the US parent. The statement also confirms
that GM Europe has secured bridge financing from the German
government and conclusion of a ‘memorandum of understanding’ (MOU)
to partner with Magna International Inc.
Is there a future for Vauxhall? Only time will tell.
“This has been a very intense and at times difficult negotiation over the past several days,” said GM Europe President, Carl-Peter Forster. “We’re extremely grateful to the various members of the German Government, led by Chancellor Merkel and Vice Chancellor Steinmeier, the various German ministries as well as the federal state governments of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Thuringia, and the leadership of the U.S. Treasury for working so hard to reach this important agreement.
“The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the US, we can now confidently say to our employees, customers, suppliers and dealers that it’s business as usual as we go through the process of creating a new, more independent Opel/Vauxhall.”
General Motors Europe has secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, which will allow sufficient time to finalize the partnership agreement. With this available financing, the European operations are isolated from any financial impact by GM’s situation in the U.S.
Under the agreement, the Opel/Vauxhall group of assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed.
UK Government ministers have been lobbying to secure the GM Europe jobs at Vauxhall.
Is there a future for Vauxhall? Only time will tell.
“This has been a very intense and at times difficult negotiation over the past several days,” said GM Europe President, Carl-Peter Forster. “We’re extremely grateful to the various members of the German Government, led by Chancellor Merkel and Vice Chancellor Steinmeier, the various German ministries as well as the federal state governments of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Thuringia, and the leadership of the U.S. Treasury for working so hard to reach this important agreement.
“The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the US, we can now confidently say to our employees, customers, suppliers and dealers that it’s business as usual as we go through the process of creating a new, more independent Opel/Vauxhall.”
General Motors Europe has secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, which will allow sufficient time to finalize the partnership agreement. With this available financing, the European operations are isolated from any financial impact by GM’s situation in the U.S.
Under the agreement, the Opel/Vauxhall group of assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed.
UK Government ministers have been lobbying to secure the GM Europe jobs at Vauxhall.