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GM Europe 'Could Run Out of Cash'
BBC ^ | 3/3/09 | Jorn Madslien

Posted on 03/04/2009 12:41:48 PM PST by marshmallow

The European divisions of General Motors (GM) could collapse within weeks without European governments' help, GM's top executive has warned.

Chief operating officer Fritz Henderson said governments should step in immediately to ensure GM Europe does not run out of money by April or May.

It could help prevent some 300,000 jobs from being lost, Mr Henderson said.

He wants governments to put up 3.3bn euros ($4.2bn, £2.9bn) to finance the separation of Opel and Vauxhall.

Mr Henderson said during the Geneva motor show that Opel and Vauxhall should become a separate division that can then be opened up for investment.

He also urged Opel, Vauxhall and Saab employees "to make shared sacrifices" to save their jobs.

Reluctance

The news followed GM Europe's chief executive Carl-Peter Forster's arrival in Geneva on Monday, on an budget airline flight from Berlin where he had been in talks with the German government about state aid.

GM Europe's chief executive Carl-Peter Forster GM's model line-up is receiving widespread praise

Following that meeting, German Finance Minister Peer Steinbrueck said he had yet to be convinced that GM Europe's Opel had a "sustainable future", a precondition for state aid.

The Swedish and UK governments have been similarly reluctant to offer direct assistance to save Saab and Vauxhall.

Mr Henderson, with Tuesday's statement, is clearly trying to force their hands, insisting that Saab will go into bankruptcy if its restructuring efforts do not succeed, and telling the UK government that it cannot expect the German government to do it on its own.

There are now growing fears that political processes aimed at helping GM will be too slow to bring forth assistance before it is too late.

(Excerpt) Read more at news.bbc.co.uk ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:
GM is done but its European division is going to be the first to croak.
1 posted on 03/04/2009 12:41:48 PM PST by marshmallow
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To: marshmallow

Sad. Some of GM’s best cars are across the pond.


2 posted on 03/04/2009 12:43:22 PM PST by Slapshot68
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To: marshmallow

Gm unfortunately is a poster child for what has been happening. See what the Euros do.


3 posted on 03/04/2009 12:45:49 PM PST by allmost
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To: allmost

Maybe they need to start manufacturing gondolas...that run on wires..up in the sky. Maybe they can make a car that runs on politicians hot air.....


4 posted on 03/04/2009 12:48:21 PM PST by rovenstinez
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To: marshmallow

GEEE WHIZ, so am I, but my trough is much smaller. IF 0 WOULD CUT REGULATIONS AND TAXES AND WE COULD BOTH SURVIVE!

F Global warming! Drill here! Drill now! Nuc Plants from sea to shining sea and Coal Gassification (sp)

Energy is our key, Gore and 0 both know it... we should too!

TT


5 posted on 03/04/2009 12:48:42 PM PST by TexasTransplant (NEMO ME IMPUNE LACESSET)
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To: rovenstinez
Maybe they can make a car that runs on politicians hot air.....

I had always believed a perpetual motion machine to be impossible but you could... Hmmm...
6 posted on 03/04/2009 12:50:19 PM PST by allmost
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To: marshmallow

buh bye


7 posted on 03/04/2009 1:00:25 PM PST by GeronL (Will bankrupting America lead to socialism?)
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To: rovenstinez
Maybe they can make a car that runs on politicians hot air.....

That alone should be enough to generate 1.21 Gigawatts.

8 posted on 03/04/2009 1:02:56 PM PST by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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To: marshmallow

The one place GM is doing well is China! Go figure.


9 posted on 03/04/2009 1:07:13 PM PST by Humvee (Beliefs are more powerful than facts - Paulus Atreides)
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To: LibreOuMort

GM EU ping


10 posted on 03/04/2009 3:32:08 PM PST by sionnsar (Iran Azadi | 5yst3m 0wn3d - it's N0t Y0ur5 (SONY) | "Tax the rich" fails if the rich won't play)
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To: marshmallow

Thank goodness for decoupling..., er, uh... (cough).


11 posted on 03/04/2009 6:12:51 PM PST by Freedom_Is_Not_Free (Depression Countdown: 79... 78... 77...)
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To: marshmallow

They should check in the bucket seat crease. I always find a little change in there.


12 posted on 03/04/2009 6:29:40 PM PST by beagleone
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