Opel unions were upset upon learning that Germany’s state rescue fund didn’t make a recommendation on loan guarantees that it requires in order to aid in financing a restructuring plan worth 3.7 billion euros ($4.52 billion).
Last Tuesday, a steering committee of the rescue fund failed to recommend if taxpayers’ money should be used to backstop loans of about 1.3 billion euros to help Opel lower European production and labor capacity by 20%. According to Germany’s Economy Minister Rainer Bruederle, the decision on loan guarantees is expected to arrive in late May or early June. About 18 months have passed since Opel made its first request for aid but officials say that since Opel isn’t dangerously close to collapsing, there actually is no immediate need to make a decision. Because of these delays, more people are speculating that Berlin is only going to consistently postpone making a decision but that it has no intention of granting the request.
[via autonews – sub. required]
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