GM gives Opel 650 million euro advance

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General Motors “gave” 650 million euros to its troubled European unit earlier this month, underlining the problems the new management team put in place by Opel boss Nick Reilly’s faces.

GM said it had advanced the cash to Opel for engineering work it otherwise would have paid them in April and July.

“The payment accelerations serve as a temporary funding source for the (Opel) group’s operations until more permanent financing can be arranged,” GM said in a regulatory filing on Friday.

GM has said it needs 3.3 billion euros to finance a restructuring plan for Opel and its UK sister brand Vauxhall.

European governments whose countries have Opel factories will obviously be paying close attention to the payment and Nick Reilly’s new management team, because they will have to sign off on 2.7 billion euros in taxpayer aid for a restructuring that includes cutting over 8,000 European jobs and possibly closing a plant in Antwerp, Belgium.

Source: Automotive News