Michael Fuchs, deputy head of Germany’s ruling Christian Democrat party believes GM has the financial strength to restructure Opel brand alone without the assistance of European state aid.
Fuchs has become frustrated by the ongoing situation in Germany of whether or not to grant state aid to Opel, saying, “The discussion … about financial aid for Opel must be ended once and for all.”
His comments come on the back of GM announcing on Monday, 10 months after filing for bankruptcy protection, its first quarterly profit in three years.
Revenue rose 40% to 31.5 billion, with GM earning $863 million in the first three months of 2010, compared to its $6 billion loss in 2009, through stringent cost cutting and improving U.S. and Asia vehicle sales.
Fuchs sights GM’s improving vehicle sales and a weak euro as an opportunity for GM to go it alone and finance the restructuring of its European division without the need for state aid.
Opel CEO, Nick Reilly in a letter to staff remained optimistic he will hear of a decision from governments in Germany, Spain, Poland and Austria on the EUR1.8 billion in state aid in the near future.
Parent GM has pledged to provide EUR1.9 billion of the EUR 3.7 billion needed for the restructure and investment in GM Europe, with Germany alone expected to contribute over EUR1 billion in state aid.
Source: Dow Jones