GM Europe pleads for state aid amidst threat of collapse |
| Wednesday, 04 March 2009 | |
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GM Europe has warned it could collapse by April putting up to 300,000 jobs at risk, unless European governments inject funding into the stricken US carmaker.
Fritz Henderson, GM's chief operating officer, said the European operation would hit liquidity problems early in the second quarter this year. Henderson is planning to split Opel and Vauxhall into separate division that can then be opened up for investment, and is seeking €3.3bn (£2.9bn) in state aid from countries across Europe. He said the US carmaker was prepared to keep only a minority stake in GM Europe if other groups invested in the majority of the business. GM is currently in talks with governments in Britain, Germany, Spain and Belgium, but has stated that Vauxhall's Ellesmere Port on Merseyside is one of its "leaner factories", indicating the plant could survive the threat of closure. European governments have so far been reluctant to offer state aid.
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